Banks back mobility not portability

Moves to make it easier for customers to move accounts within the European Union have won the backing of UK banks it was revealed today.

Angela Knight said it was crucial EU plans emphasised, ‘mobility not portability’ for any scheme to operate safely and effectively for customers.

Chief Executive Angela Knight CBE said: “UK banks support EU initiatives to give customers greater choice and freedom. I believe the UK already leads the way in helping people move from bank to bank. We have a model here which would help cut out unnecessary red tape and give customers a fast, safe and effective way to move their account.

“Proposals for one single account number from cradle to grave across the whole of the EU won’t work and could lead to less customer choice. Every country has its own way of doing things which would make it a nightmare to dovetail systems across all member states. It also fails to take into account the way people want to bank – for example having one account for the bills and another for saving.”

Ms Knight said she believed UK banks were leading the way in helping customers switch accounts. The Banking Code sets out how UK banks have signed up to a tight three day time limit for transferring all direct debits and standing order details to the customer’s new bank. Banks also have ten working days from the date the application is approved to make sure customers have all they need to operate their new account. An April 2007 survey found that the rates of switching are increasing in the UK, with 453,100 more people moving their current account in the six months to the end of March compared with the second half of 2006. This demonstrates that the Banking Code is effective.