British Banks About to Get More Consumer Friendly

Facts matter: Sign up for the free Mother Jones Daily newsletter. Support our nonprofit reporting. Subscribe to our print magazine.


One of the things that keeps people from switching banks is that it’s a pain in the ass. In Britain, they decided to do something about that:

Under orders from the U.K. government to remove barriers to competition, large and small lenders alike have spent two years and a total of about £750 million ($1.2 billion) preparing to make it possible for checking-account customers to switch banks within seven business days. Starting Monday, the banks will have to handle the process of moving accounts and making sure that automatic bill payments and money transfers are shifted seamlessly to the customer’s new bank

The experiment is being closely watched not just in Britain but also by industry officials and policy makers in the U.S., where banks aren’t obligated to assist customers who want to defect to a rival institution and the switching process can drag on for more than a month. Industry consultants said the British project could become a template for banks in the U.S. and elsewhere.

Uh huh. Sure it could. I’m sure that a year from now the finance lobby will have prepared a dozen white papers explaining what a disaster this has turned out to be for British customers, and how adopting it in the U.S. would raise costs for everyone and all but destroy consumer banking. And that will be that. After all, if banks say something would be bad for consumers, who could doubt them?

REAL QUICK, REAL URGENT

Minority rule, corruption, disinformation, attacks on those who dare tell the truth: There is a direct line from what's happening in Russia and Ukraine to what's happening here at home. And that's what MoJo's Monika Bauerlein writes about in "Their Fight Is Our Fight" to unpack the information war we find ourselves in and share a few examples to show why the power of independent, reader-supported journalism is such a threat to authoritarians.

Corrupt leaders the world over can (and will) try to shut down the truth, but when the truth has millions of people on its side, you can't keep it down for good. And there's no more powerful or urgent argument for your support of Mother Jones' journalism right now than that. We need to raise about $450,000 to hit our online fundraising budget in these next few months, so please read more from Monika and pitch in if you can.

payment methods

REAL QUICK, REAL URGENT

Minority rule, corruption, disinformation, attacks on those who dare tell the truth: There is a direct line from what's happening in Russia and Ukraine to what's happening here at home. And that's what MoJo's Monika Bauerlein writes about in "Their Fight Is Our Fight" to unpack the information war we find ourselves in and share a few examples to show why the power of independent, reader-supported journalism is such a threat to authoritarians.

Corrupt leaders the world over can (and will) try to shut down the truth, but when the truth has millions of people on its side, you can't keep it down for good. And there's no more powerful or urgent argument for your support of Mother Jones' journalism right now than that. We need to raise about $450,000 to hit our online fundraising budget in these next few months, so please read more from Monika and pitch in if you can.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate