Menu pick current account

David Black, Principal Consultant of Banking for Defaqto, comments on The Co-operative Bank's introduction of a pick'n'mix current account: "While some providers are now offering a range of added value current accounts - from entry level to premium - this has only partially addressed the issue that different customers have differing requirements in terms of incentives."

"This move from The Co-operative Bank is a sign of things to come. Product differentiation is continuing apace in the current account market and it was only a matter of time until someone launched a menu option with a pick and choose approach to incentives. I fully expect to see further developments in this direction and such is likely to embrace not only facilities and incentives but also service levels."

"For providers the current account represents the foundation stone for building a relationship with each customer and often enables the cross-selling of other profitable services and products."

"Faced with the OFT's ongoing court case and market study there is a growing eagerness among providers to build up customer numbers into their added value current accounts as this will lock in the resultant guaranteed income stream."