Debit and credit arrangements still a disincentive for switching banks
More bank customers are reluctant to switch bank accounts due to the perceived effort involved, despite the Government mandating that banks make it easier, according to Datamonitor research.
The 2009 online survey of 2,300 consumers revealed that 29 per cent kept their transaction account provider for reasons other than satisfaction.
“For transaction accounts the effort involved acts as a deterrent to switching, while for mortgages exit fees serve to lock customers in,” said senior analyst Petter Ingemarsson.
The research found that the number of transaction account holders who switched provider in the previous 12 months actually dropped between 2008 and 2009, from 7.2 per cent to 5.5 per cent. Ingemarsson said the use of direct debit and direct credit arrangements greatly increased the perceived effort of switching accounts, despite the Government mandating a debit and credit listing and switching service for banks in 2008. Datamonitor research suggests that in some cases banks are unable or unwilling to provide this service.
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