(4 November 2008 – Australia) The Australian Bankers’ Association has announced that from the start of November, a new switching service was launched.The new service, provided by retail banks, building societies and credit unions is intended to assist personal bank customers wanting to switch to another transaction account provider.
The ABA said that banks worked with building societies, credit unions and other payment participants in a project coordinated by the Australian Payments Clearing Association (APCA).
David Bell, chief executive of the ABA, said that the new services require financial institutions to provide exiting personal customers with a list of regular payments, such as direct debits and credits, over the past 13 months.
He said that the customer’s new financial institution can use this list to assist the new customer re-establish regular payments by notifying merchants, businesses and other services providers.
Bell said that this will save customers both time and hassle.
Bell added that, while highly convenient, re-establishing direct debits when a customer moves banks can be a bit of a hassle.
This is why banks are introducing and promoting a switching service that helps personal customers contact their providers and change their direct payment arrangements.