According to new research from Tesco Bank many consumers don’t understand the value of their bank account, a problem that is preventing them switching to potentially more suitable alternatives.
The findings show that the majority of current account customers (55%), for example, find it impossible to understand the value of their account – one of the earliest conditions that must be met before customers will consider switching.
Furthermore, there were stark differences between ‘stickers’ (people who are not considering switching), of whom 62% cannot determine the value of their current account, and switchers, of whom only 24% cannot determine the value of their current account.
Tesco Bank has provided the findings to the UK Competition and Markets Authority to support their review into the current account market, and has called for the industry to make it easier for customers to see the true cost of their accounts and the value of what they receive in return,
Andrew Hagger of Moneycomms commented: “The switching process is now quicker and easier, but if consumers aren’t confident that moving their account will be of financial benefit then they’ll stick where they are, even though their existing account may be a bad fit.”
He added: “There’s currently too much focus on introducing portable account numbers at a time when the inability to easily compare the financial benefits appears to be a bigger barrier to account switching.”
Benny Higgins, Tesco Bank Chief Executive, said, “Customers are telling us that more needs to be done to enable them to understand the true cost and value of their current account. Only then will customers be able to make sure that they are choosing an account that is right for them.