Financial provider flexibility 'beneficial'

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Financial provider flexibility 'beneficial'

Fri 29th Jun 2007

An increasingly flexibility being offered by banks in terms of account switching among financial providers is "very healthy" for the industry.

The British Bankers Association's (BBA's) comments follows the news of an Abbey account being rolled out which will provide eight per cent interest on balances up to £2,500.

A spokesperson for the BBA said she was "happy to see a healthy market place" and that customers could "easily and conveniently switch from one organisation to another if they see a deal that suits their personal better".

Asked whether the banking industry was increasingly creating niche products for consumers, the spokesperson said: "Banks always try to tailor their products to customer demand, but again I couldn't say whether that is something that is increasing because we haven't been collecting the data."

Commenting on the forthcoming availability of the Abbey account, the head of current accounts at Alliance & Leicester, Andy Bayes, said: "It is great to see our competitors picking up the baton and joining us and challenging the Big Four [banks] by offering customers competitive rates of credit interest."

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