Changes still needed in current account market - Banking - News - Moneyfacts


Changes still needed in current account market

Changes still needed in current account market

Category: Banking

Updated: 25/01/2013
First Published: 25/01/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Significant changes within the current account market are still required to combat concerns regarding competition, according to a review published by the Office of Fair Trading (OFT) today.

In its report, the OFT claimed that customers lack confidence in the account switching process, and continue to be perplexed when comparing the costs of current accounts.

The OFT called for the lack of diversity and competition amongst providers in the current account market to be addressed, whilst the complexity of overdraft charging structures was also criticised.

Although progress was still needed in a number of areas, there had been some improvements in the sector since the OFT's last review in 2008.

The OFT claimed that customers have saved up to £928 million a year from a reduction in unauthorised overdraft charges between 2007 and 2011, whilst it welcomed plans for an automated account switching service and forthcoming initiatives designed to help customers compare banking products and services.

Clive Maxwell, chief executive of the OFT, said: "Personal current accounts are critical to the efficient functioning of the UK economy. Despite some improvements, this market is still not serving consumers as well as it should."

What next?

Find out how to choose the best bank account by reading our banking guides.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

More people are switching current accounts

Competition in the current account market remains intense, which means if you’re not happy with your account for any reason, now’s a great time to switch! Happily, more and more people seem to be getting in on the switching action...

Financial services complaints continue to fall

Many people feel dissatisfied with their financial providers at times, but happily, it looks as though the most serious complaints are becoming less and less common.

Contactless spending hits yet another record

Contactless spending is going from strength to strength, hitting new records on a seemingly monthly basis - and it’s just broken yet another one, with monthly contactless spending having passed the £2bn mark for the first time.