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Account switching report welcomed

A recent report on improving the capacity for consumers to switch accounts between financial institutions strikes the right balance between consumer choice and avoiding unnecessary costs for smaller financial institutions.

"Queenslanders Credit Union welcomes today’s release of the Fraser report. Mr Fraser has conducted a thorough consultation with consumer groups and industry and come up with a sensible approach to improving the ability of consumers to switch their financial institutions," said Mr Brett Maunder, Marketing and Communications Manager for Queenslanders Credit Union.

The Government has accepted Mr Fraser’s recommendations for simple improvements to the existing account switching arrangements. Under these arrangements, consumers will no longer have to visit their existing bank to switch to another financial institution like a credit union or building society.

Mr Fraser has avoided jumping to high cost, highly technologically-based solutions like full account number portability. These types of solutions would have had serious financial impacts on the banking industry, and on small institutions in particular.

"Consumers can now choose a new financial institution that meets their needs and their new financial institution can set up all their direct payments on their behalf. This takes the hassle out of switching and the hassle out of having to visit your existing bank to get a list of your direct debits and credits.

"Queenslanders is pleased the Government has accepted Mr Fraser’s recommendation. Most importantly, we look forward to welcoming a range of new customers and showing them the benefits of banking with a customer-owned banking institution," said Mr Maunder.