BSB switching 'should be simpler'

The BSB number that appears on your bank statement is controlled by the bank but consumer groups are campaigning for change to make it easier to switch your savings account, it has been reported.

A BSB number - which stands for bank, state and branch code - is used by banks, building societies and credit unions across Australia but the digits are not controlled by the consumer.

The Consumer Action Law Centre said that this situation is prohibiting people from easily changing their bank accounts and getting the best deal possible, the Sydney Morning Herald has reported.

In the same way that mobile users keep their existing contact number and change from carrier to carrier in search of the best service, consumers should be able to do the same with their savings, according to a submission to a government inquiry into banking competition.

The consumer group's submission, published in the newspaper, said: "In the telecommunications industry switching costs were recognised as a barrier to effective competition and the portability of phone numbers was introduced to address this."

Furthermore, it was stated that giving consumers the ability to change their banking account number to a new provider would slash costs in the sector as it would eliminate the need to transfer direct debit and credit arrangements.

A recent online survey by mortgage broker Loan Market Group discovered that 55 per cent of consumers would "definitely'' switch their current and savings accounts to another provider if the government made it easier to do so.

Compare savings accounts.

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