Brits more likely to switch bank if they could keep account number

Six out of ten people (63%) support the introduction of portable account numbers in the UK and three-quarters (76%) believe that this would make switching accounts easier, according to a survey by Which?. More than half of people (55%) surveyed have never switched their current account.

The findings come as Which? and Andrea Leadsom MP today host a joint event at the House of Commons to encourage banks to introduce portable account numbers. Representatives from Lloyds, RBS, Barclays, HSBC, Metro Bank and Virgin Money are attending along with members of the Treasury Select Committee, and the British Bankers Association.

The introduction of portable account numbers means consumers could move their current account to another bank more easily - simply taking their account number with them, removing the need to change existing direct debits and standing orders.  This would make switching banks as easy as changing mobile phone providers and would increase competition on the high street, forcing the banks to genuinely compete for customers and therefore incentivising better products and customer service.

Which? executive director Richard Lloyd said: "One of the most important ways that consumers can influence the broken banking culture in this country is by voting with their feet and switching to another bank. Yet half of consumers have never changed current accounts.

"With consumer trust in banking at an all time low, we want to see big change in banking with banks for customers, not bankers. We urge the Government to seriously look at introducing portable account numbers to make switching easier for consumers."

Andrea Leadsom MP and member of the Treasury Select Committee said: "Customers are fed up of excuses from their banks. What they want is a massive shake-up of how banks work. Full bank account portability fits the bill perfectly. And it wouldn't just be customers who'd be better off.

"At one stroke, huge barriers to entry for new banks would be torn down. Regulators would instantaneously be able to move deposits out of a failing bank, to prevent a run like we saw with Northern Rock. And the current high levels of bank losses due to fraud would be significantly reduced.

"The sooner bank customers can switch accounts like they change mobile phone providers, the better it will be for everyone."

Portable account numbers could produce many other benefits, creating changes to the agency clearing service that would make it easier for smaller banks to start-up, therefore increasing competition on the high street.  It may also reduce the chances of taxpayers having to bail out the banks again, because the regulator could shut down a failing bank and transfer personal and business accounts to another existing bank.

Which? and Andrea Leadsom MP are calling on the Government or the regulator to conduct a full, independent assessment into the costs and benefits of introducing portable account numbers, with a view to introducing portable account numbers as the best way to increase switching.

The Government should also consider the significant administrative savings for companies, local authorities and government departments from introducing portable account numbers. Whenever a consumer switches their bank account, every single company that interacts with that account needs to change the details on their own systems.