Have you changed your current account in the past decade?
Over two thirds of the British public have been with their current account provider for ten years or more, according to exclusive new research.
The findings, from the Moneywise Consumer Opinion Survey of 20,000 people, reveal that apathy still reigns supreme when it comes to everyday banking, with 67.5% of people claiming they have been with their current provider for at least a decade.
It indicates that recent banking problems such as the IT meltdown at Royal Bank of Scotland (that locked millions of RBS and NatWest customers out of their accounts in 2012), mis-selling, and poor customer service have had little effect on consumers.
The research shows that just 4% of people have switched their primary current account provider in the last year.
But this may be set to change in the near future – the Moneywise findings indicate that 14% of people are currently considering switching to a new provider. New entrants, such as the Post Office, are helping to shake-up the current account market in 2013.
In January 2013the Office of Fair Trading ordered banks to take action to improve their service, after claiming that current account charges are too complex.
The OFT found that, despite improvements in the last few years, comparing the costs of current accounts continues to be challenging and that people lack confidence in the switching process.
Clive Maxwell, OFT Chief Executive, said: "Customers still find it difficult to assess which account offers the best deal and lack confidence that they can switch accounts easily. This prevents them from driving effective competition between providers."
The Moneywise research indicates that around 15% of the population still do not have a current account. It also shows that 80% of people prefer to do their banking online, while just 3% prefer to do their banking on a mobile app.
The results of the Consumer Opinion Survey have been used to crunch the shortlist for the Moneywise Customer Service Awards 2013 – at which Britain's most trusted current account provider will be announced on June 13th. The shortlist can be viewed here.
The practice of a dishonest salesperson misrepresenting or misleading an investor about the characteristics of a product or service. For example, selling a person with no dependants a whole-of-life policy. There have been notable mis-selling scandals in the past, including endowment policies tied to mortgages, employees persuaded to leave final salary pensions in favour of money purchase pensions (which paid large commissions to salespeople) and payment protection insurance. There is no legal definition of mis-selling; rather the Financial Services Authority (FSA) issues clarifying guidelines and hopes companies comply with them.
An account opened with a clearing bank (few building societies offer current accounts) that provides the ability to draw cash (usually via a debit card) or cheques from the account. Some pay fairly minimal rates of interest if the account is in credit. Most current accounts insist your monthly income (salary or pension) is paid directly in each month and they offer a number of optional services – such as overdrafts and charge cards – which are negotiable but will incur fees.