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."
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