Account switching to get easy in 2 weeks
Banks will soon be doing the dirty work for customers wanting to switch transaction accounts, with new reforms set to kick in from July 1.
Australian Bankers' Association chief executive Steven Munchenberg believes competition between banks will intensify as the difficulties switching are reduced.
Under the new reforms, a customer will be able to contact a new bank to open an account and they will then contact the customer's old financial institution to obtain a list of direct debits and credits over the past 13 months. The customer decides what credits and debits they want to switch across.
By signing a form, their new financial institution will provide all the relevant organisations with the customer's new banking details. It will cut out hours of work for transaction account holders.