Gocompare.com comments on the new CASS switching figures from BACS
Matt Sanders, head of money at Gocompare.com Money, said: “The CASS switching figures show that consumers are far less ruthless at ditching poor value from their current accounts than they are with their car insurance or their mobile phone tariff. And as in those markets, it’s not due to a lack of competing products to choose from. There are offerings from the big high street banks, the challenger banks, the new digital only banks and regional building societies. It’s the complexity of picking an account which is truly fit for purpose that’s the main barrier to increasing switching.
“Without using a comparison tool such as midata, it’s virtually impossible to determine what account is best for you. A consumer might be able to narrow it down to a shortlist, but working out which is the cheapest or most rewarding is a minefield of tiered interest rates, switching incentives, various percentages of cashbacks and variable monthly fees.
“Every current account is different – banks have designed them to reward very specific behaviours and financially penalise others – like overdraft usage fees. When customers look at insurance comparison, they see a list of clear policy features and a price that’s fixed and personalised to them. When they look at current account best buy tables, they see a list of products ordered by the best interest rate – which may not even be applicable to them. The only comparison tool which can cut through the smoke and mirrors and give a tailored comparison is midata.
“The Government must push PSD2 (Payment Services Directive 2) through to the banks so that comparison sites can make it easier for customers to compare products properly and choose the right account for their own usage.”
“Gocompare.com is still the only comparison website that lets customers use their midata information to carry out meaningful current account comparisons.”
See Gocompare.com's guide on the midata current account comparison service for more information.
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