FCA launches consultation on new rules for current account performance rating

The Financial Conduct Authority (FCA) has today launched proposals aimed at making it easier for customers to compare the performances of personal current accounts and business current accounts.

The City watchdog, which is reponding to a recent report into bank accounts produced by the Competition and Markets Authority (CMA) proposes to require firms who offer personal current accounts and business current accounts to publish service information about:

The proposal is for information to be easy for consumers to access and compare and would also be available for use by comparison services and others.

The FCA said it expects the changes to drive increased competition between firms to offer improvements in service quality.

Christopher Woolard, executive director of strategy and competition at the FCA, said: “Customers tell us they think “all banks are the same” and so they are discouraged from looking for current accounts offering better performance. We know from our consumer research and the CMA’s report that consumers and small businesses are really interested to know about the service their bank or building society offers compared to other firms.

“These proposals represent a step forward, making it easier for consumers to judge whether their bank is offering good service and for firms to see if they are competing effectively against other providers.”

Other recommendations from the CMA aim to encourage consumers to consider their banking arrangements, to increase transparency for overdraft users, to deliver a more competitive market for small businesses and to promote innovation by encouraging delivery of an Open Banking solution that delivers benefits for consumers.

The full consultation paper can be seen here.