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| Would portable account numbers make you more likely to switch banks? | Would portable account numbers make you more likely to switch banks? |
| (7 months later) | |
| Consumers would be more likely switch their current account to a different bank if they were able to keep their existing account number, according to consumer group Which? | Consumers would be more likely switch their current account to a different bank if they were able to keep their existing account number, according to consumer group Which? |
| Six out of 10 people by the group said that they would be more likely to change their account provider if they were able to take their account number with them, something that would allow them to maintain their existing direct debits and standing orders. | Six out of 10 people by the group said that they would be more likely to change their account provider if they were able to take their account number with them, something that would allow them to maintain their existing direct debits and standing orders. |
| Which? is also holding a meeting at the House of Commons with the Conservative MP Andrea Leadsom and representatives of all the major high street banks, where they will put the case for portable account numbers. | Which? is also holding a meeting at the House of Commons with the Conservative MP Andrea Leadsom and representatives of all the major high street banks, where they will put the case for portable account numbers. |
| The organisation argues that if regulation of the banking sector followed a similar model to the telecommunications industry, where it is commonplace for people to keep their phone numbers when they change networks, people would make the change in bank accounts as frequently as they do their mobile providers. | The organisation argues that if regulation of the banking sector followed a similar model to the telecommunications industry, where it is commonplace for people to keep their phone numbers when they change networks, people would make the change in bank accounts as frequently as they do their mobile providers. |
| This appears to be backed by the survey that found 76% of people believed that the introduction of portable account numbers would make the process of changing banks easier. | This appears to be backed by the survey that found 76% of people believed that the introduction of portable account numbers would make the process of changing banks easier. |
| Leadsom, a Treasury Select Committee member, sees other benefits to this reform. As well as giving consumers more choice she believes that it would pave the way for the diversification of the banking sector. | Leadsom, a Treasury Select Committee member, sees other benefits to this reform. As well as giving consumers more choice she believes that it would pave the way for the diversification of the banking sector. |
| "Customers are fed up of excuses from their banks. What they want is a massive shakeup of how banks work. Full bank account portability fits the bill perfectly. And it wouldn't just be customers who'd be better off," she said. | "Customers are fed up of excuses from their banks. What they want is a massive shakeup of how banks work. Full bank account portability fits the bill perfectly. And it wouldn't just be customers who'd be better off," she said. |
| "At one stroke, huge barriers to entry for new banks would be torn down. Regulators would instantaneously be able to move deposits out of a failing bank, to prevent a run like we saw with Northern Rock. And the current high levels of bank losses due to fraud would be significantly reduced." | "At one stroke, huge barriers to entry for new banks would be torn down. Regulators would instantaneously be able to move deposits out of a failing bank, to prevent a run like we saw with Northern Rock. And the current high levels of bank losses due to fraud would be significantly reduced." |
| The recent IT meltdown at Royal Bank of Scotland and its subsidiaries NatWest and Ulster Bank, combined with bad publicity around other major high street banks, led to a flurry of consumers vowing to switch their accounts to new providers. | The recent IT meltdown at Royal Bank of Scotland and its subsidiaries NatWest and Ulster Bank, combined with bad publicity around other major high street banks, led to a flurry of consumers vowing to switch their accounts to new providers. |
| However, the Which? survey showed more than half (55%) of those questioned had never changed their current account. | However, the Which? survey showed more than half (55%) of those questioned had never changed their current account. |
| The idea of portable account numbers has been cautiously welcomed by the Move Your Money campaign, whose spokesperson, Louis Brooke, described it as "a great first step". He called for banks to be more transparent about the cost of their accounts to ensure that consumers had a better idea about the quality of the services they were paying for. | The idea of portable account numbers has been cautiously welcomed by the Move Your Money campaign, whose spokesperson, Louis Brooke, described it as "a great first step". He called for banks to be more transparent about the cost of their accounts to ensure that consumers had a better idea about the quality of the services they were paying for. |
| The Payments Council, which is working with the government on a plan to dramatically reduce the length of time it takes to switch accounts, is more sceptical about the value of focusing on portable account numbers. It estimates that the cost of introducing them could be between £5bn and £10bn. | The Payments Council, which is working with the government on a plan to dramatically reduce the length of time it takes to switch accounts, is more sceptical about the value of focusing on portable account numbers. It estimates that the cost of introducing them could be between £5bn and £10bn. |
| Chief executive, Adrian Kamellard, claimed that their plans to reduce the time it takes to switch accounts to seven days would "deliver exactly what Which? is calling for" but do so in a way that "is more cost-effective" as well as entailing "significantly less risk to the UK payments infrastructure". | Chief executive, Adrian Kamellard, claimed that their plans to reduce the time it takes to switch accounts to seven days would "deliver exactly what Which? is calling for" but do so in a way that "is more cost-effective" as well as entailing "significantly less risk to the UK payments infrastructure". |
| Would you be more likely to switch if you were able to take your old account number with you? Or should a lack of transparency over costs and services be the more pressing concern for customers? | Would you be more likely to switch if you were able to take your old account number with you? Or should a lack of transparency over costs and services be the more pressing concern for customers? |
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