Why Do Banks Need Your Existing Account Details?

the89er

I currently have a Lloyds Bank account and am looking into opening a new bank account with Halifax.

Upon visiting their online application page, they need details (sort code, account number, debit card) of my existing bank account.

I found this a bit bizarre since I didn't choose their Switch Account service.

Does anyone know why they (or any bank) would need existing bank account details to open a new account?

Thanks.

Willing2Learn

I would assume that their online application form is a fixed template. So even though you are not switching, their form still asks for the same standardised information.

jonesMUFCforever

Lloyds and Halifax are the same banking group - if you have a good credit file with Lloyds it may help you with Halifax should you want to apply for credit cards overdrafts and loans - if you allow them to share your data.

blue.peter

the89er wrote: »

Does anyone know why they (or any bank) would need existing bank account details to open a new account?

I'm not certain, but I think that it might be an aid to identification for anti-money laundering purposes.

Sea_Shell

They use your existing accounts to help verify your identity.