'Misplaced' loyalty to banks is bad for economy
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Customer loyalty to banks is often "misplaced", according to the soon-to-be-defunct watchdog Consumer Focus.
The "unacceptably high level of complaints" shows that banks provide a poor service to their customers, yet "just 7 per cent of current accounts are switched each year", said Sarah Brooks, the head of financial services at the watchdog. The potential for direct debits not being paid and administrative errors is often cited for the low level of current-account switching, surveys have shown.
Consumer Focus made its remarks as the Office of Fair Trading released a report into the barriers to entry in UK banking. The OFT concluded that there were opportunities for new entrants to the banking market, but that these would face considerable difficulty in persuading customers to switch, out of a combination of brand loyalty and a preference for banks with many branches.
Clive Maxwell, the OFT's executive director for goods, services and mergers, said that these barriers were a negative for customers and the economy as a whole. He added: "Vigorous competition in retail banking is vital for personal and small-business customers."
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments