Still too few customers switching banks

22 Oct, 2015

Bank customers could save an average of £70 a year by switching their current account to another provider, And heavy overdraft users – who’d benefit most from switching – are the least likely to do so, despite the fact they could save up to £260, according to a new report from the Competition and Markets Authority (CMA).

Andrew Hagger of Moneycomms said:”We may well have a slick and efficient current account switching mechanism in place, however until something is done to make it easier for people to compare accounts and identify one that matches the way they run their day to day finances people will remain reluctant to move banks.”
He added: “The crux of the problem is that people simply don’t have the confidence to uproot their banking relationship because they don’t know which account to move to – the array of different in credit and overdraft tariffs is so confusing many don’t bother no matter how slick and polished the switch process has become.”
“There is the Midata comparison tool, but how many people actually realise this exists? – a more straightforward comparison option such as traffic light labelling would help people narrow down their search for a new bank account at a glance, plus it doesn’t involve having to go online to download your data as with Midata.”
meanwhile, research from Aimia which has monitored consumer attitudes quarterly since 2013, shows that there’s been a significant fall in apathy among customers towards banks. Only 14% of customers currently remain with their bank because they ‘can’t be bothered to change’. This is a significant drop from the one in five (20%) who said the same in 2013, before the Current Account Switch Service* was introduced.