Are bank switching incentives unethical?

born_again

Stenwold said:

born_again said:

Stenwold said:

It's hardly a bribe!

It's an incentive to get feet through the door - current accounts aren't money makers, but they (mostly) bring in the right type of customer for cross selling (mortgage, insurance, credit card etc.). 

Bribe.
a sum of money or other inducement offered or given to bribe someone.

So would you move your bank account if they did not offer one?

No, that's the point of the incentive.

Also, you can't use the word bribe in the definition of the word bribe - it offers no explanation to what the word means!

A quick google search for the definition will show you that most examples are linked to illegal/dishonest connotations, which is not what these incentives are. Would you rather there were no rewards for switching account?  

One mans incentive is another mans bribe

Would love to see FCA rule on this. But feel they will not as they do not want to upset the public.

Stenwold

born_again said:

Stenwold said:

born_again said:

Stenwold said:

It's hardly a bribe!

It's an incentive to get feet through the door - current accounts aren't money makers, but they (mostly) bring in the right type of customer for cross selling (mortgage, insurance, credit card etc.). 

Bribe.
a sum of money or other inducement offered or given to bribe someone.

So would you move your bank account if they did not offer one?

No, that's the point of the incentive.

Also, you can't use the word bribe in the definition of the word bribe - it offers no explanation to what the word means!

A quick google search for the definition will show you that most examples are linked to illegal/dishonest connotations, which is not what these incentives are. Would you rather there were no rewards for switching account?  

One mans incentive is another mans bribe

Would love to see FCA rule on this. But feel they will not as they do not want to upset the public.

Don't quote me on this but I think the FCA did look into it briefly when reviewing the Current Account Switching Service - they made a recommendation for the Competition and Markets Authority to review the benefits offered to switch account. The CMA had a look and said they were in favour of the 'incentives' if it means more movement between financial institutions.

This was a few years ago now but I think that's the general gist of it. 

eskbanker

There was another one already from last week:

https://forums.moneysavingexpert.com/discussion/6195118/are-bank-switching-incentives-unethical/p1

born_again

Not again....

NottinghamKnight

I'd classify it as quarantine 

Thenonameleague

Yes the switches are ethical.

gsmh

I don't think anyone has said they consider bank rewards or bribes are unethical. Where did you get that from? I think they're a normal part of attracting new customers who will switch their day-to-day bank account. I've taken advantage of a few in my time. It's another way of using an advertising budget. I also take advantage of Quidco and have received a decent cashback on all sorts of things.

phillw

I guess there are two sides to the argument. A bank offering incentives to someone who has a single bank account, which they close when they switch. Compared to someone who opens a dozen accounts and has switched repeatedly to the same bank if they let them

gsmh

NottinghamKnight said:

Good, now comment on here to your heart's content and stop clogging up other threads.

But it's a non-issue! Why do you persist in trying to make a debate about something we all agree on? Incentives are completely ethical!

The_Green_Hornet

Yes or no.