The UK retail banking sector officially launched a new system created to increase competition by making it easier for British consumers to switch current accounts between banks, reported Finextra. Despite the new initiative, politicians are still encouraging banks to take it a step further by allowing full account number portability.
Thirty-three banks and building societies in the UK—which represents nearly all of the current account market—have agreed to the Current Account Switch Guarantee program. The free service is committed to making sure account switching is done within a seven-day time frame, which is a significant difference from the previous 18-to-30-day program. All incoming payments will automatically be redirected the new customer accounts with the need to speak with old providers.
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