Portable account numbers would ease bank switching says watchdog

The City watchdog's consumer panel has called for the introduction of portable bank account numbers to boost competition in the sector.

The Financial Services Consumer Panel (FSCP) also warned banks to take complaints more seriously if they are to repair their reputation. Speaking at a British Bankers' Association seminar, Mike Dailly, a member of the panel and principal solicitor at Govan Law Centre, said portable account numbers would make it easier to switch provider, boosting choice and value for money for customers. Portable account numbers are already used in the mobile phone industry and the FSCP believes their adoption in the banking sector would be a "great leap" towards better competition.

While 36 and 26 per cent of consumers have switched energy and phone supplier respectively in the past two years, just 7 per cent have moved current account, according to the Independent Commission on Banking.

Dailly said: "One of the underlying causes of bad bank behaviour and complaints is a lack of competition and transparent charging structure in the UK banking industry. It's only a matter of time before 'trouble-free switching' of current accounts takes-off in the UK, and consumer savvy bank customers start shopping around."

Dailly also called for banks to "get serious" about complaints. "Consumers deserve fairer outcomes and banks need to start rebuilding their damaged reputation by putting customers at the heart of their service, to retain their loyalty and money," he said.