News and Media

Switching banks made easier

Are you sick and tired of your bank? Fear not! A new 'tick and flick' service, to be implemented from 1 July 2012, will mean you can switch banks without having to change the details of automatic debit and credit transactions.

Customers will be able to simply sign a form that authorises their new financial institution to do all the work for them. The new bank then arranges the transfer of all automatic transactions linked to the customer's old account and informs associated creditors and debtors about the new account details.

Treasurer Wayne Swan says the initiative gives customers the power to easily switch to another bank, building society or credit union if their existing institution isn't providing good value and service.

'It will take the headache out of switching bank accounts, encouraging consumers to seek out the best deal on their savings,' Mr Swan says.

'In December last year, I commissioned former Reserve Bank Governor Bernie Fraser to investigate options for greater account transferability and this new initiative has been recommended by Mr Fraser as part of that review.

'This important reform builds on the Government's ban of mortgage exit fees and delivers another key element of the Competitive and Sustainable Banking System package I announced in December last year.'

Australian Property Investor. 'Switching banks made easier' . 22 August 2011. Reproduced with permission.