People will be able to compare current accounts from the big six high street banks for the first time using a government-backed service launched on Thursday by the Gocompare.com website.
Customers will be able to upload a statement provided by their bank to the new website, which will analyse their past 12 months of transactions and compare the costs and benefits of each account.
“This innovation will put much more control in the hands of customers and could transform the current account market,” said City minister Andrea Leadsom. “It will help customers understand how they are spending their money and whether they can get the best deal.”
Gocompare.com said 1.6m people had moved their current account since the industry introduced a seven-day switching service in 2013.
But it said four in 10 people it surveyed had never changed current account providers.
Customers could soon be allowed to move from one bank to another immediately, while keeping the same account number — much as they do with mobile phones — under proposals to be examined by the new Payment Systems Regulator.
The information on current accounts will be provided by HSBC, Lloyds Banking Group, Royal Bank of Scotland, Barclays, Nationwide and Santander using a “midata” file format, a government initiative to give customers access to data held on them by private sector companies.
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