MSE News: Banks' loyal customers are a 'captive audience', regulator warns...

JuicyJesus

It does continually stun me that people not only expect banking to be free of charge, but that they also expect the money for this to come out of the ether.

No overdraft charges, no banking charges, no packaged accounts, no cross-selling, no mixing of retail banking and investment banking (although granted that last one is for a decent reason), must have lots of branches, must let people do as they please and do things the most expensive ways possible without charging for them... where exactly is the bank's running cost supposed to be funded from, let alone the profit that makes actually engaging in the sector worthwhile?

The best way forward IMO - but one that won't actually get any traction because the Mail will whinge about "waaa people using cash and cheques shouldn't be penalised for doing expensive things" - is to operate personal accounts on the same lines as some business accounts. You don't use branches and do everything online, you pay minimal charges; you use branches and cash and cheques heavily, you'll be on a different tariff where you pay for these services. That way the people who incur the most cost pay the most in charges.

molerat

The FCA report found that current account customers tend to automatically go with their provider when they get other banking products, rather than shopping around.
It found, for example, that:

52% of personal current account customers with credit cards have one with their personal current account provider
48% of personal current account customers with personal loans have one with their personal current account provider
32% of personal current account customers with mortgages have one with their personal current account provider.

I have savings accounts with all 4 of my current account providers.
I have a credit card with all 4 of my current account providers.
I have a credit card with one of my savings account providers who I do not have a current account with.



What does that do to those statistics. It would have been more useful if it had been "with their only current account provider" and "have no other products from other providers"

SuiDreams

What silly Statistics


Quote:
The FCA report found that current account customers tend to automatically go with their provider when they get other banking products, rather than shopping around.
It found, for example, that:

52% of personal current account customers with credit cards have one with their personal current account provider
48% of personal current account customers with personal loans have one with their personal current account provider
32% of personal current account customers with mortgages have one with their personal current account provider.

I have current accounts with 10 different banks, most of which are to get access to specific products. Just because I have a savings account / credit card / or mortgage, with a bank I have a current account with, doesn't mean I haven't shopped around or gotten the best deal / product for me.

JuicyJesus

I have a current account with one bank that I don't use, and a credit card and a loan with that bank, and a sole and a joint account with another that are my main accounts, plus a savings account with that same bank, plus god knows how many credit cards with other entities. So am I evidence that I tart around, because I have products with banks besides my main one, or am I evidence that I'm complacent because I have a loan and a CC with one of the banks I have an account with?

It's all bloody stupid. And the sad thing is all it'll do is lead to the FCA demanding more and more intrusive action to "promote competition" when the reality is that most consumers couldn't give a sunblushed sh*t who in particular provides their bank account or their credit card or their mortgage or loan so long as the terms are acceptable to them.

Shakin_Steve

There are exceptions to the rule. For instance, I wouldn't consider having Tesco as my main current account, but 3% on £6000 is very nice.

VT82

JuicyJesus wrote: »

It does continually stun me that people not only expect banking to be free of charge, but that they also expect the money for this to come out of the ether.

No overdraft charges, no banking charges, no packaged accounts, no cross-selling, no mixing of retail banking and investment banking (although granted that last one is for a decent reason), must have lots of branches, must let people do as they please and do things the most expensive ways possible without charging for them... where exactly is the bank's running cost supposed to be funded from, let alone the profit that makes actually engaging in the sector worthwhile?

You forgot about having to massively overpay compensation at the merest whiff of a complaint, just because they are an evil bank.