NCC requests customer-friendly bank accounts
Published On 20 November 2006
The National Consumer Council (NCC) has this weekend called for banks to engineer and design more customer-friendly basic bank accounts.On the back of the news that the take up of basic bank accounts has leapt to 6.5 million, the NCC has highlighted that over half of account holders are still managing their money in cash and are missing out on the benefits of a bank account.
As a result, the NCC has drawn up a blueprint for creating a more inclusive and customer-focussed basic bank account structure in the UK.
Some of the key changes recommended by the NCC are an easy and hassle free account opening process, a standardised set of account features and a number of innovations to improve accounts.
Particulars of the NCC strategy include face-to-face customer inductions at a bank, weekly text alerts and also ways to reduce the risk and impact of default charges.
Nicola O'Reilly, NCC senior policy advocate, said: "Now that more low-income consumers are starting to engage with the banking system, new problems with the design and delivery of accounts have come to light.
"Our research shows that many people fail to take their first step in banking because they feel intimidated and unwanted by the banks. Others, who have an account, don't use what it offers. They feel they can't get the control, visibility and flexibility over their finances that come with managing their money in cash.
"By addressing the mismatch between what people want from banks and what they actually get, NCC's blueprint will boost the consumer appeal of banks and basic accounts. We urge all basic bank account providers to work towards our blueprint."
