Key points:
- There is strong evidence that the difficulty of switching accounts between banks acts as a significant barrier for customers in relation to deposit accounts. (click to view letter to Bernie Fraser from Wayne Swan)
- The main banks are anti ANP, due to the costs it will likely impose on financial institutions, employers and retailers, which would be passed on to consumers. (Click to view Treasury briefing into banking sector competition 21 February 2011)
RaboDirect is promoting discussion around bank Account Number Portability (ANP) ahead of a report being prepared by former Reserve Bank of Australia governor Bernie Fraser. The report, which will look at the viability of introducing ANP in Australia, is due to be delivered to the treasurer, Wayne Swan before June 30.
ANP, which allows consumers to keep their account numbers when they switch banks, is already offered by many banks overseas, including Rabobank in the Netherlands. It’s introduction would remove significant hurdles discouraging Australian consumers from chasing a better deal by switching banks.
RaboDirect’s General Manager, Greg McAweeney, said “Research into bank account portability in Australia has been on the cards for some time and RaboDirect is eager to hear the findings from the report over the coming weeks. Whilst financial institutions in Australia are against account portability due to the upfront costings, it would promote competition and reduce complacency, thereby benefitting consumers nationally.
“RaboDirect encourages competition within the banking sector and at 6.5 per cent; RaboDirect has a leading interest rate on savings accounts in Australia. All Australians deserve to be getting the best deal from their bank and switch accounts easily, if needs be. Without this freedom, we are allowing the big banks to trap consumers into the wrong type of account.”
