29 November 2006
Consumers are being put off switching their current account, telling financial experts that it is "too much hassle" to move all of their direct debits and other financial obligations.
A YouGov survey carried out on behalf of Abbey revealed that 65% of the 3,750 people asked said that the hassle of amending direct debits or standing orders put them off switching accounts.
In addition, 49% believed there was no benefit since all banks are similar and 29% feared losing their personal relationship with their bank.
Worryingly, 26% of the consumers believed their banks would not help them transfer and a further 24% were anxious that a new provider would not offer the same level of facilities as their current bank.
In reality however, it appears that the two-thirds of people put off from switching their current accounts are worrying about problems that just are not there, with 90% of people who did switch their accounts saying that it was easy.
"It is fascinating that direct debits and standing orders– functions which have helped people manage their accounts better – seem to be driving bank inertia," said Steve Shore, Abbey's head of banking marketing.
"The perception remains that account switching is complicated and ridden with potential pitfalls. However, it is extremely easy to switch accounts, with direct debits and standing orders automatically transferred," he continued.
Mr Shore encouraged consumers to seriously consider switching their current account if they were unhappy with their bank, or risk "losing out" on all of the potential benefits.
© 2008 Adfero Ltd
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