Transfer of bank account numbers proposed to make switching easier
Which? and a Conservative MP have teamed up to ask banks to offer 'portable' bank accounts.
Consumer champion Which? is holding an event at the House of Commons today with Conservative MP Andrea Leadsom to encourage banks to offer ‘portable’ accounts.
A move to allow bank account numbers to be transferred to other banks, in the same way as mobile phone number can be transferred between providers, could make the process of switching banks much easier. It would mean, in theory, that there would be no need to transfer a person’s Direct Debits and Standing Orders to a new account number.
Six in ten of us would more be likely to switch bank if we could keep our bank account number, according to a survey carried out by Which?
It found that more than half the people it spoke to had never switched bank.
Representatives of Barclays, HSBC, Lloyds, Metro Bank, Royal Bank of Scotland and Virgin Money will be attending the event.
Which? and Andrea Leadsom say such a change would also make it easier for small banks to start up, increasing competition.
What do you think of the idea? Would it make you more likely to switch accounts? Cast your vote in our poll below.
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I've had the same current account with Barclays for over 30 years and feel no need to switch. Nor to see millions of pounds of govt or shareholders' money spent on this idea. I only use my Barclays account for writing the odd cheque and moving money about. The fact that they are uncompetitive worries me not because it is very easy to shop elsewhere for financial services on a product by product basis without moving bank accounts. A couple of times over the years they have provided crap service - I have complained and they have given me some money to say sorry. It's a quaint way of doing business and you could argue that my free banking is subsidised by people who borrow money and are hit by their charges. But I'm happier with the status quo.
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Having just moved banks it was not exactly a problem changing my Direct Debits etc. However changing your email address can be a nightmare.
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As has been stated, the Sorting Code identifies the Bank and branch and unique, so that cannot be ported. You can't take a Barclays Sort Code 20-XX-XX and become an HSBC customer where theirs start 40-XX-XX. Removing Sorting Codes altogether is fatal, since there are a finite number of account numbers out there (account numbers are 8 digits in all) and even within the same Banking Group, there are very likely to be the same account number, that is differentiated solely by the unique Sorting Code. Nice idea Which? (for whom I am a member and fervent supported), but wrong at so may levels.
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01 October 2012