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“Current accounts are a mess of tiered interest rates & fees – making it near impossible for the average consumer to find the right one without help."

03 November 2016

Gocompare.com comments on the FCA’s move to improve the current account market.

In response to the FCA’s announcement today (3rd November 2016) that the organisation is acting to improve competition in the current account market, Matt Sanders, head of money at Gocompare.com commented;

“At the moment, current accounts are a mess of tiered interest rates and fees – making it near impossible for the average consumer to find the right one without help.

“Current accounts are a particularly complicated product because there is no ‘one size fits all’ or ‘best’ account. The right current account is entirely dependent on how you use it on a day-to-day basis, so selecting the right one without first analysing your spending is an uphill battle. This is a problem which needs to be addressed, especially as more consumers are turning to interest paying current accounts to combat pitiful savings rates.

“That’s why it’s especially encouraging to see the FCA identify open banking as key to improving switching in the current account space. When Gocompare.com launched the UK’s only midata comparison service alongside the Treasury in 2015, we were investing in the future of data driven comparison. As such, the FCA’s commitment to supporting the Open Banking Initiative also supports our vision for the market.

“Midata enables customers to choose the right bank account for them without having to do all the maths themselves. They simply upload their bank statements and midata analyses their banking transactions, making hundreds of calculations including daily in-credit balance and any overdraft changes paid together with the fees, charges, interest rates and reward schemes linked to each available account.  Within a few seconds the customer is shown the best value account for them.

“Improvements to the methods in which banks share the information needed to make enhanced data driven comparison with switching tools, along with ensuring the data remains secure, can only improve these services for consumers – which in turn should make switching easier for customers and drive much needed competition in the market.

Gocompare.com has cretaed a dedicated guide on midata for current account comparison, the only service of its kind in the UK.

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