MSE News: Public 'backs portable bank account numbers'

jamesd

Yes, banks typically use a weak error checking method that will catch a few types of error, often mistakes in one digit. Depends on the particular method chosen by each bank, there's a document that gives the checking rules for each sort code. Weak checking beats none, though some do have none.

This doesn't mean that all numbers have to be changed. A different range could be allocated for the portable version of a number, while the existing ones could continue to work just as they do now. That's in part how the IBAN and BIC system works, just different numbers added on top of the existing system.

JuicyJesus

Increased banking competition is something that is likely to help all bank account users. Being able to trivially move transactions around is part of increasing that competition.

The problem is I don't see how it helps competition at all. It removes one, maybe two steps from switching bank accounts for most people, while causing extensive work and headaches for a lot of businesses and people. The key thing is that you are in a tiny minority.

I personally have very average banking needs (salary in, DDs, debit card transactions and SOs out) and have switched bank accounts between providers maybe ten to fifteen times, amassing a collection of maybe ten different account numbers, and not once have I thought it would all go more smoothly if my account number would stay the same. All it would mean is I wouldn't have to tell my employer where to pay my salary, which is probably the most painless step of any switching process. (It also means I would be reliant on my new bank to update the routing records properly, so if they didn't do so my salary could go missing. Do you really want the likes of Santander to be involved with that? )

Most peoples' banking requirements are extremely similar to mine, maybe with the addition of tax credits or benefits (so, one or two extra telephone calls). And most people do not switch bank accounts as often as you or I do - and that's not because of lack of competition, it's because for most people their bank account is a utility like any other and they'll only consider switching if there is an obvious overriding benefit or their current provider has p*ssed them off enough that they want to leave them.

As another posted said, it would be billions of pounds spent for little to no benefit to competition or indeed anything else. While you personally may be able to see uses of it for yourself, you are in a very small minority in having banking needs that complex, and more to the point will not yourself have to bear any of the cost for implementing this system.