Economy
Two in five will move banks after launch of switching scheme in September
Two in five people are expected to switch banks when a new £750m government-backed system is introduced in September, which will allow consumers to move their money in just seven working days.
A poll carried out by MoneySupermarket.com suggests that the switching scheme will prompt consumers to change their bank, with one in ten changing banks for the very first time.
It’s hoped that the scheme will go some way to allay fears that switching banks is a long and arduous process.
Kevin Mountford, head of banking at MoneySupermarket.com, said, “The launch of the current account switching guarantee is good news for consumers with the process becoming even more streamlined than before.”
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The switching scheme has been welcomed by campaign groups. Move Your Money said last week that it is “payback time” for big banks, which have been under scrutiny recently for unethical practices.
“With seven-day switching becoming a reality, no longer do we need to put up with bad banks, outrageous bank charges, poor customer service and cash-points that crash when we try and access our own cash”, Move Your Money chief executive Laura Willoughby said.
According to the MoneySupermarket.com poll, 10% of consumers claim that they will not take advantage of the new system, saying that it will cause too much hassle and that “all banks are the same”.
The new system is due to be rolled out on September 16.
Further reading:
‘Payback time’ for big banks as launch date for switching service announced
Government backs £750m IT system to make switching banks simpler
Banks customers reveal switching fears – but 80% say process is easy
Big five’s banking monopoly at risk, with 2.4m closing accounts in 2012