The Financial Conduct Authority’s chief executive will be grilled by Lords today as part of a probe into poor understanding of money related matters.

The House of Lords Committee on Financial Exclusion will take evidence this morning from Andrew Bailey and his FCA colleague Christopher Woolard, the executive director, strategy and competition.

The committee is seeking to get to the bottom of the why some in society have trouble accessing mainstream financial services.

They have been assessing why some people encounter difficulties accessing or using the mainstream financial services that are “necessary to participate in daily economic life and society”.

Financial literacy and education have been put under the spotlight.

Sue Fox, chief executive of M&S Bank and Stephen Uden, head of social investment at Nationwide Building Society, will also appear at the hearing.

The committee will ask the witnesses whether the FCA should be obliged to consider the ease with which consumers in deprived areas can access financial services, how banks can be encouraged to do more to promote basic bank accounts and whether the price cap on ‘pay-day loans’ should be extended to other areas such as rent to buy and subprime credit.

In the second session questions will cover the role of technology in tackling financial exclusion.

Baroness Tyler of Enfield, chairman of the committee, said: "Our inquiry will seek to get to the bottom of the challenging issue of financial exclusion.

“Figures suggest around 1.5 million people do not have access to a bank account and we want to understand the impact and effects of that.

“The issue is not limited solely to bank account access, however, and financial exclusion is a persistent problem that has proved a significant challenge for Governments over a number of years. We want to find out how it can be tackled.”

The evidence sessions will start at 10.40am in Committee Room 2A of the House of Lords.