The FCA has announced proposals to help customers make effective comparisons on the service levels offered for personal and business current accounts.
The FCA proposes a requirement for firms who offer personal and business current accounts to publish service information about:
• how long it takes to open an account and have features of the account working, including overdraft facilities
• how long it takes to replace a lost, stolen or stopped debit card
• how long it takes to give someone access to a personal current account under a power of attorney
• how and when customers can carry out various transactions, including making payments or cancelling a cheque, and whether 24-hour help is available, and
• the number and type of major operational or security incidents.
The FCA’s proposal is for information to be easily accessible to consumers in order for them to compare various options.
This information will also be available for use by comparison services and others.
The proposal follows five recommendations made to the FCA by the Competition and Markets Authority (CMA) in its 2016 market investigation report into retail banking.
“Customers tell us they think ‘all banks are the same’ and so they are discouraged from looking for current accounts offering better performance,” said Christopher Woolard, executive director of strategy and competition at the FCA.
“These proposals represent a step forward, making it easier for consumers to judge whether their bank is offering good service and for firms to see if they are competing effectively against other providers.”
The FCA has also received recommendations from the CMA to encourage consumers to consider their banking arrangements and to increase transparency for overdraft users, as well as the objective to deliver a more competitive market for small businesses.
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Masthaven teams up with Intrinsic Financial Services
Masthaven has announced a new partnership with Intrinsic Financial Services as the bank looks to enable more brokers to access its range of residential mortgages.
Cambridge & Counties refinances Oxfordshire nursery
Cambridge & Counties has refinanced an Oxfordshire nursery, which is creating 50% more places for local children.
How important are brokers in the specialist banking market?
Brokers are an important channel for newly launched banks, a number of industry professionals have claimed.
BFC Bank enters UK market
BFC Bank has launched into the UK banking market offering financial services to UK SMEs.
Liam Fox launches GREAT Innovation in Action Awards
International trade secretary Liam Fox has launched the GREAT Innovation in Action Awards to find the best partnerships between UK and Asia-Pacific companies.
Teachers Building Society names new board of directors chair
Teachers Building Society has named Julie Nicholson as the new chair of its board of directors.
Church of England introduces contactless payments
The Church of England has introduced contactless, virtual terminal and SMS mobile payments to over 16,000 churches, cathedrals and religious sites across England.
FIBA workshops to feature live deal room
The Financial Intermediary & Broker Association (FIBA) has announced that its upcoming regional workshops will give brokers the chance to interact with partner lenders in a live deal room.
Metro Bank to enter Scottish mortgage market
Metro Bank has announced that from 5th April it will be expanding its mortgage business into Scotland.
Do challenger banks need to collaborate on Open Banking?
Collaboration between challenger banks on Open Banking could be a powerful message to consumers and the established players, according to an expert at a recent event.