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Banks consider making it easier to move accounts
With banks face increasing demands from politicians and regulators to improve the service provided, they are considering measures to reduce the time it takes for customers to switch their bank accounts.
The process currently takes around four to six weeks and, even then, problems can occur. The proposals could see this cut to between one to two weeks, and accounts may even be switched within seven days two years from now, similar to the system already in place in Holland.
These measures are being considered at a time when the Independent Commission on Banking and the Treasury Select Committee are examining the competitiveness of the banking system, and the role played by the ability to switch accounts easily.
In fact, the Select Committee has already heard evidence that the difficulty of switching is proving a major barrier to increased competition, and the matter is also to be covered in an options paper this April.
