ABA to facilitate easier bank switching via code
Two-thirds of Australians found switching banks to be an easy process, and three million have switched over the past three years, according to the Australian Bankers’ Association (ABA).
In a submission to the Productivity Commission into competition in Australia’s financial system the ABA said it was working on reforms to be included in the new Code of Banking Practice to facilitate easier bank switching.
The submission said the new code obligations included:
- Accounts to be closed when requested without delay;
- Banks to provide a list of recurring payments on all accounts to the customer on request; and
- The provision of clearer and more accessible information on how to close accounts, across channels, such as online and in branches.
ABA chief executive, Anna Bligh, said Australia had a competitive banking system with hundreds of providers of financial products and services, and many comparison websites at customers’ fingertips.
“An ABA survey conducted by Galaxy Research shows that almost two-thirds of Australians have accounts at more than one bank, suggesting that people are shopping around to find the best deals and the right products for their needs,” she said.
“Canstar data shows there are more than 1,000 deposit products on offer, 4,000 different home loans, almost 200 business loan products and 157 credit cards.
“These products have many different features and interest rates which provide customers with great flexibility and choice. This includes fixed or variable home loans, low-fee or rewards based credit cards, and basic bank accounts for low-income earners.”
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
