BBA: OFT current account study

UK banks offer a wide range of products and services and are committed to providing their customers with high quality service and accounts to meet all their financial needs.

The retail banking market is open and competitive. Banks actively seek new customers - as any walk down the high street or search on the internet.

The OFT's market study contains many good points but some of its numbers are difficult to rationalise as they use assumptions and averages and, importantly, do not recognise the costs of providing the services.

Its own survey found very high satisfaction rates with 1 in 3 people keeping a close watch for better deals. Also, a recent study for BBC television's Watchdog programme found customers stayed with their bank because they were happy with the service and products they received and felt they would do no better elsewhere. It was not because they were either unaware of how to switch or because they felt it was too complicated. This is backed up by international research.

Banks are keen to ensure customers can continue to use their current accounts for day to day transactions without paying fees - as more than 4 out of 5 do now. In the UK customers do not pay a fee for their normal banking services and interest rates on savings accounts are high. This model is recognised as being one of the best in the world as elsewhere it is common to have to pay for using cash machines, direct debits and more.

Switiching is easy and accounts are fee-free if you stay in credit. If customers want to switch banks the new bank will do all the work - this includes transferring the account and changing all the direct debits and standing orders. Banks also offer a wide range of high interest deposit products so customers can earn good interest on their savings.

This does not mean banks are going to sit back. We will actively work with the OFT and our customers to continue to offer the best deals and services we can.