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
TSB names new general counsel
TSB has announced that Lorna Curry (pictured above) will become its new general counsel in January 2018.
Why business owners need to know about Help to Grow
Last week, I read with interest some new research from the Institute of Directors’ start-up network (the IoD99) which revealed that UK entrepreneurs are feeling confident about growing and developing their businesses in 2018, despite challenges posed by Brexit and new regulatory requirements.
Metro reveals new director of commercial real estate
Metro Bank has announced Gabrielle Berring will join the challenger bank as its new director of commercial real estate on 2nd January 2018.
Aldermore names new chairman
Aldermore Group PLC has announced that Pat Butler will become its new chairman.
Have banks changed their behaviour since the financial crisis?
A quarter of UK SMEs (24%) believe that banks have failed to change their behaviour since the global financial crisis in 2008, according to a new study.
Revolut introduces cryptocurrency feature
Revolut has added a new feature to its mobile app which allows customers to buy and exchange three major cryptocurrencies.
Secure Trust Bank partners with Complete FS
Secure Trust Bank has been added to the Complete FS lending panel.
FCA publishes new rules for current account providers
The FCA has published final rules which will require providers of personal and business current accounts to publish information that will help customers to compare the service they could receive.
Will there be a rise in UK ‘drive-thru’ banks?
Just over half of finance professionals have said they expect to see an increase in ‘drive-thru’ banks, according to a survey conducted by Specialist Banking.
Swedish mobile banking start-up secures new funding
Swedish mobile banking start-up firm Plexian has completed its secondary public offering.