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Deloitte comments on OFT's call for more competition in current account market

25 January 2013

Deloitte, the business advisory firm, comments on the Office of Fair Trading’s (OFT) call for more competition and innovation in the current account market.

Nick Sandall, lead financial services partner at Deloitte, said:

“It is optimistic to think that market forces alone will bring about the change in current account pricing that the OFT is seeking.  Deloitte’s research suggests that competition in the market for UK current accounts is fierce, with banks paying customers up to £200 to switch accounts.  Meanwhile, high street banks are also investing in very innovative functionality around mobile access, loyalty programmes and banking applications - most of which are offered free.

“As the OFT’s own findings show, banks will look to recover reductions in penalty fees from other sources.  However, one of the last places they will look is in prime, in-credit current accounts, precisely because they value these relationships highly and the market is very competitive.  Banks would probably prefer to introduce fee-based banking but they fear that, when offered the choice between fee-based banking and so-called free banking, many customers - particularly financially sophisticated customers – will opt for free banking.”

- Ends -

Note to editors:

About Deloitte
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.

Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities.

Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.

The information contained in this press release is correct at the time of going to press. 

Member of Deloitte Touche Tohmatsu Limited

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