I attended several Christian conferences last year, and, at each one, someone raised concerns about de-banking (the closure of a person or organisation’s bank account by a bank that perceives them to pose a risk to the bank). 

This mistrust stems from a fundamental misunderstanding in the relationship between banks and churches and can be driven by lack of communication between the two. More often than not, it seems to be the case that churches may have jumped to conclusions and overlooked the heart of the problem. 

Perception: a woke agenda 

Over recent years, numerous churches have become convinced that they are mistreated by some of the major UK banks. Specifically, that the banks have developed a fervent dislike of those church customers who have taken a stance against the ‘progressive’ liberal cultural shifts we are witnessing in society.   

This perception is bolstered by several high-profile cases which give some credibility to these concerns. For example, a major high street bank was in the media last summer for closing an account for Core Issues Trust, a Christian charity that support those leaving LGBT identities. This was followed by Nigel Farage’s and Richard Fothergill’s personal account closures. Alongside this, there have been examples of churches which have had their accounts closed without explanation leading to the belief that banks harbour an anti-Christian sentiment. Or, that a local church (or an individual) who stands up and protests about certain issues may be debanked for these views.   

In simpler words, churches think banks hate churches.   

Reality: regulation and risk assessment 

During its new customer on-boarding processes, a bank will scrutinise any organisation, including churches, that has a controversial media profile. This treatment is no different for any new organisational customer whose media profile raises concerns. However, de-banking existing church customers is very unlikely. It’s even more unlikely since the government, regulators and courts have waded in against de-banking.   

Banking regulations insist that customers must be treated fairly.  So, some churches may have concluded that they are being persecuted when, in fact, something else is going on. The real issues may involve regulatory compliance, financial controls, and mitigating risks associated with financial crime. Something of much greater concern to banks than if a church does or doesn’t fit with its alleged woke agenda. 

Last year in the UK, 140,000 small business accounts were closed – in effect, de-banked. Although some of these accounts belonged to churches, they represent only a tiny fraction.

Re-evaluating perceived persecution 

So, if it’s not persecution of Christians, why all this de-banking?   

There are three key drivers that we will explore in Part 2: the real reasons behind church de-banking*. These consist of:  

1. The cost of handling physical cash.  
2.  A lax attitude toward regulatory compliance. 
3. Weak financial controls. 

It may be prudent for churches to reassess their understanding of why they face banking issues, considering the broader regulatory and risk management environment that banks operate in.  

By doing so, churches can address the actual concerns and improve their relationship with banks. 

Even more positively, let’s work to ensure that churches and banks can forge better relationships built on trust. That said, I realise that relationships with many banks are now purely electronic and virtual.

Perhaps this is a good point at which to note that, at Kingdom Bank, we have great personal relationships with our valued church customers. We can’t yet offer your church a current account, but we’re passionate about gaining a good mutual understanding and a great sense of gospel partnership – we’d love to be able to serve you with mortgages, savings and deposit accounts, property services and church and charity insurance. 

*Part 2 will be uploaded shortly.

This article originially appeared in Evangelicals Now in 2024.