The UK Payments Council has called for
“massive system changes for all banks” to ease the account
switching process.

The proposals come as a fresh blow for an
already struggling banking sector as unsatisfied customers could be
incited to switch banks because they will face less hassle in the
process.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

The proposals by the Payments Council, to be
imposed by September 2013, include:

  • automatic switching of incoming payments: To
    date, only outgoing payments such as direct debits are moved to
    another bank account directly – and the consumer carries the
    responsibility to notify anybody who pays funds into their
    account;
  • that direct debit collectors update their own
    records if customers change account details, and
  • cutting the time it takes to switch accounts
    from 18 to a maximum of seven days.

“It will encourage competition within the UK’s
banking sector and improve transparency for customer,” the Payments
Council said in a statement.

According to
research by Accenture, 16% of customers switched banks in 2010,
compared with 14% in 2007; and 14% said that they were planning to
switch in the next 12 months.

Younger customers are 30% less likely to
complain, the management consulting found, which means that
they are less likely to hesitate to switch banks. In fact,
customers aged between 18 to 24 years were 50% more likely to
switch banks.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

 

Related articles:


E&Y hails new era in customer
expectation


UK lobby group CBI opposes ring-fencing
proposals


Banks still not get it right: customer dissatisfaction
rises


PPI: Court blow for UK banks


Lloyds attracts almost 2,000 complaints a
day


Consumers turn to Google instead of financial
advisors


UK Independent Commission on Banking: proposals in
September