Our new research in partnership with the Current Account Switch Service (CASS), operated by Pay.UK, found that millions of overdraft users are currently sticking with their current account providers, due to misconceptions around switching current accounts when using an overdraft. This leaves millions of sole traders and consumers in the red and with the belief they’re stuck with their current account provider who may no longer best suit their needs.
Key findings
*https://www.fca.org.uk/news/press-releases/fca-confirms-biggest-shake-up-overdraft-market
Implications for the Sector
Current Account providers: Provide more information on overdraft offerings. Let potential customers know that you they are able to switch when in their overdraft.
Web comparison websites: Make it more visible for customers looking to switch, that the overdraft is not a barrier.
CASS: Promote greater awareness of the service and how easy it is to switch with an overdraft.
To launch the report as part of Talk Money Week, we held a webinar to discuss the findings and the wider implications. Liz Barclay, UK Small Business Commissioner, Alistair Kuechel, Director at IFF and John Dentry, Manager at Pay.UK joined the panel Chaired by Faith Reynolds, strategic adviser to industry, government and regulators. Watch again here.