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Moneynet questions banking report
Moneynet has questioned whether or not the Independent Banking Commissions' latest report into competition in the banking sector will really change customers' mindsets.
The report recommends making the account switching process faster and suggests allowing customers to keep their account numbers when they move, encouraging more people to switch their current accounts.
However, Andrew Hagger from Moneynet suggested that this is not the reason why consumers do not move their accounts.
"Switching your energy, telephone or broadband provider may have become the norm to save a few pounds but switching current accounts in the same way or frequency just isn't going to happen," he said.
Citing a survey by the comparison site, 34 per cent of consumers said they would not switch their account because they see all banks as being the same.
Mr Hagger not only suggested that new players in the sector would soon cast aside their gimmicks in search of a "better profit margin and a need to satisfy the City", but also claimed that there is already competition in the industry.
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The report recommends making the account switching process faster and suggests allowing customers to keep their account numbers when they move, encouraging more people to switch their current accounts.
However, Andrew Hagger from Moneynet suggested that this is not the reason why consumers do not move their accounts.
"Switching your energy, telephone or broadband provider may have become the norm to save a few pounds but switching current accounts in the same way or frequency just isn't going to happen," he said.
Citing a survey by the comparison site, 34 per cent of consumers said they would not switch their account because they see all banks as being the same.
Mr Hagger not only suggested that new players in the sector would soon cast aside their gimmicks in search of a "better profit margin and a need to satisfy the City", but also claimed that there is already competition in the industry.
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Published: 12/04/2011
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