(20 June 2012 – Australia) Reforms starting on 1 July mean banks will be doing the dirty work for customers wanting to switch transaction accounts.Australian Bankers’ Association chief executive Steven Munchenberg told News.com competition between banks will intensify as the difficulties with switching are reduced.
‘It is a lot easier for a customer to go and, most importantly, the customer has gone before the old bank necessarily finds out about it,’ he said. ‘That should keep the banks more on their toes.
‘When banks know customers can walk without telling them first, then that is going to put them under more pressure to make sure they have got them a good deal.’
Under the new reforms, a customer will be able to contact a new bank to open an account and they will then contact the customer’s old financial institution to obtain a list of direct debits and credits over the past 13 months.
The customer decides what credits and debits they want to switch across.
By signing a form, their new financial institution will provide all the relevant organisations with the customer’s new banking details. It will cut out hours of work for transaction account holders.