Banking reform proposals to include mobile accounts

BANK accounts could soon be made portable, like mobile phone numbers, allowing customers to switch between high street banks in search of the best deal.

The proposal is expected to be announced next week by the Independent Banking Commission in its interim report on how to restructure the industry after the crisis.

IBC chairman Sir John Vickers is likely to suggest a shake-up of the current accounts market, including a proposal that customers be given a portable account number to increase the ease with which they can move accounts if they are unhappy with service.

The Office of Fair Trading estimates that banks make 9 billion a year from personal current accounts, with the bulk of the profits coming from overdraft penalties and paying little or no interest to customers who keep their accounts in credit.