19 September 2006
The current account market is highly competitive as banks strive to lure customers to their products, according to new research.
Defaqto's Current Account Report has discovered that many banks are putting in place strategies to retain and attract new customers in an increasingly competitive market place.
This move comes amid speculation that banks will see incomes hit in the future by a probable cap on delinquent charges and increased competition.
David Black, Defaqto head of banking, said: "This is an increasingly tough market where success will depend on how effective each bank is in retaining and upgrading its existing customers and capturing new ones.
"With banks being forced to generate new income streams, it is vital for each to prepare for the new market conditions."
The report finds that banks are placing a new emphasis on packaged and premium accounts, which offer the customer the widest range of features.
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