Brussels, 24/02/2012 (Agence Europe) - Changing your bank account in the EU is not impossible but it is certainly far from easy. To judge from the results of a study published on 24 February, by the European Commission, more than two thirds of shoppers attempting to change bank accounts in 2011 did not succeed. The consumer market study was based on the experiences of consumers in this field and aimed to verify, through a mystery shopper's survey, the efficiency of the self-regulation initiative set up by the EBIC (banking industry committee) to rectify, at the behest of the European Commission, the significant obstacles to customer mobility. It should be said that the experience has not proved entirely conclusive and the Commission is therefore examining other possible ways of raising standards.
The European commissioner for consumers, John Dalli, emphasised: “Consumers need to be able to look for opportunities in the market without undue difficulty or fear of disruption of their payments or receipts. People should be able to change their bank account as easily as they do any other service.” Michel Barnier, Dalli's counterpart for the internal market, added that the difficulties facing consumers when it comes to switching bank accounts mean that “the single market is thus deprived of the competitive drive that leads to innovation, cost savings and better quality banking services. This, in the long-run, can prove to be an obstacle to growth.”
The main findings in the mystery shopper survey of December 2010 are as follows: (1) only 19% of mystery shoppers were able to successfully open a bank account with a new bank and switch a standing order based on the process described in the Common Principles established through self-regulation; (2) 81% of mystery shoppers had problems switching and they identified the following weaknesses: ?71% of banks would not assist in the transfer (therefore they did not follow the procedures outlined in the Common Principles); 7% of banks approached did not open an account and/or switch a standing order within 14 working days; 3% of mystery shoppers found that the new bank refused to open a standard account. For example, shoppers were told they would have to receive their pay on the new account if they wanted to open it; lack of information - while the study found that 86% of consumers enquiring about a switch either in a bank branch, online or by telephone, did receive information from at least one information source, the level of information provided was found to vary widely; 14% of consumers received no information at all. The study also mentions a low level of awareness about switching among bank staff.
It should be pointed out that Barnier has announced, for November 2012, legislative action to increase the transparency if banking costs (see EUROPE 10529). (ANA/transl.fl)