The Irish Bankers federation has launched the new IBF Business Account Switching Code last week. The Code will make it easier for businesses to switch current accounts and demand deposit accounts from one financial institution to another. As such it is the next step, given that consumers already have access to the service (and 5 % are using it in Ireland, as opposed to 0,325 % in the Netherlands).
In implementing the Code, financial institutions are making three key commitments as follows:
* to provide to business customers a ‘switching pack’ that clearly and simply explains the process of switching accounts, who is responsible for what, how long it will take and exactly what the customer has to do;
* to have the customer’s new account up and running within 10 working days from the bank’s approval of the customer’s application; and
* to complete the process of switching everything over from the old to the new account – incl. standing orders and direct debits – within 7 working days of a signed (by customer) Transfer Account Form being sent by the new bank to the customer’s old bank.
Now, lets see what the take-up will be...