ICB banking reforms 'will mean people switch accounts more'

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ICB banking reforms 'will mean people switch accounts more'

Mon 19th Sep 2011

A financial consultant has claimed that if the Independent Commission on Banking (ICB) manages to implement some of its changes to UK banks, then switching bank accounts will become more common as people attempt to avoid charges.

Keith Churchouse, director at Churchouse Financial Planning, stated that there is a high degree of certainty that banks could pass the costs of ICB reforms on to consumers, currently estimated at £1 billion.

Implemented due to the financial crash of 2008-09, the ICB's report includes a recommendation to ring-fence banking practices between their investment arms and their high street retail services.

"The only way they are going to do that is to introduce charges. I can certainly see the end of free banking coming along very quickly indeed," explained Mr Churchouse.

He added that people would need to be careful over who they choose to bank with, predicting that consumers will swap accounts as they "move to try and keep costs down".

The ICB report stressed that the ongoing financial strains in both Europe and America had increased the need to reform the banking system in the UK, which it hopes will begin at the latest by 2019.

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