Gocompare.com comments on the CMA’s retail banking market investigation provisional decision on remedies
Matt Sanders, head of money at Gocompare.com Money, said: “The CMA’s report shows that many customers still think the switching process is fraught with complexity and risk. And this is despite the Current Account Switch Service (CASS) having made the process of transferring from one current account provider to another easier than ever before.
“This uncertainty, coupled with the fact that people find it difficult to establish the true value of a current account, has resulted in very little competitive pressure or impetus to innovate in the market.
“Our own research shows that just 10% of people switched their current account in the last 12 months, and a third (33%) have never done so.* This makes current accounts the financial product that people are least likely to switch away from, and with many people opening their first account in their teens, that’s lot of potentially misplaced loyalty.
“The true pounds and pence value of a current account can only be revealed through the use of midata – which lets customers use 12 months’ worth of their banking data to run comparisons that show the cost of banking based on how they use their accounts. When the benefits and drawbacks of current accounts are laid bare in this way, banks and building societies will be encouraged to develop products that appeal to what really matters to customers.
“Gocompare.com is the only comparison website that lets customers use their midata information to carry out meaningful current account comparisons.”
Gocompare.com has produced a guide on midata for current account comparison.
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Notes to editors:
* On 9 May 2016, Bilendi conducted an online survey among 2,001 randomly selected British adults who are Maximiles UK panellists, on behalf of Gocompare.com. The margin of error-which measures sampling variability-is +/- 2.2%. The results have been statistically weighted according to the most current education, age, gender and regional data to ensure samples representative of the entire adult population of United Kingdom. Discrepancies in or between totals are due to rounding.