A massive 21 million consumers would consider a move to banks offering customers the ability to offs...
A massive 21 million consumers would consider a move to banks offering customers the ability to offset their balances for interest calculation purposes, according to a survey for Intelligent Finance.
However, consumers have clear preferences when it comes to the type of integrated offer they favour. The survey found that seven out of ten adults would prefer an integrated banking offer that allowed them to keep their various accounts separate but still enjoy the interest advantages of integrated banking.
The survey had bad news for all those providers offering current account mortgages. One in three or almost 15 million adults said they would be put off moving to an integrated banking offer that insisted they should move their current account to them and pay-in their salary or regular income every month.
The majority of UK adults expressed interest in having all their accounts with a bank that offered to offset the money they had with them against the money they borrowed before calculating the interest they owed.
This underlines the ability of integrated banking to overturn the conventional wisdom that consumers are concerned about putting too many 'eggs in one basket' and cross-sell more products to customers than traditional banks.
Interest in integrated banking was particularly strong amongst 18-34 year olds, the next generation of bank customers, with over 6 out of 10 saying they would be interested in such an offer. Furthermore, almost 60% of them went on to say that they would consider moving to a provider who offered integrated banking to them.
Commenting Jim Spowart, Chief Executive, Intelligent Finance said: "This survey underlines why I believe integrated banking is set to dominate the UK banking market in the years ahead. Consumers warm to the patently fair principle that underpins integrated offers. They are a good deal - in sharp contrast to traditional banks that have treated them as 'cash-cows' for far too long."
"Providers will have to recognise that consumers want a flexible integrated banking offer and not a 'one-pot shop' or a deal that comes with restrictions or tie-ins. They might have got away with such offers a few years ago, but if they don't move with the times they will quickly find they are trying to sell a product whose sell-by date has long since passed."
The increase in minimum AE contributions has had little impact on opt-out rates - with cessations after April increasing by less than two percentage points, data from The Pensions Regulator (TPR) shows.
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