Many bank customers are unaware of the seven day service for switching bank accounts, says the Financial Conduct Authority, (FCA).
The FCA said that the service which enables customers to move their money to a different bank is not being sufficiently publicised and so is having a disappointing impact. It has called on banks to do more to raise awareness of the service through advertising campaigns.
The Current Account Switch Service was first introduced in September 2013 and enables customers to move their accounts from one bank to another in seven days rather than in the 18 to 30 days the process would previously take.
Since its introduction, 1.64 million people have moved their bank accounts. The peak came in November 2013 when 105,802 people switched. The figures for February 2015 were lower, at 91,615.
Christopher Woolard, the FCAs director of strategy and competition, said that banks should work harder to make the public aware of the tools that exist to make moving banks a relatively quick and simple process.
The FCA also said that customers would find the process less daunting if they could keep the same bank account numbers. Portable bank accounts are, in theory, feasible but there is no indication yet when they might become a reality.
The Current Account Switch Service works very well for those customers who use it, reported the FCA. The service is run by the Payments Council, which says that it has plans to make more improvements to it. It will be running advertising campaigns in order to raise the public*s awareness of the scheme and to increase their confidence in using it.
Five banks currently offer incentives of £150 to consumers who wish to move their bank accounts.
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