ABA to work on improving bank account switching service
Article by Mozo
The organisation is set to cooperate with the banking industry and the federal government to make the process more efficient.
Consumers were advised by the ABA to compare debit cards and transaction accounts if they are not happy with the one they already have.
Steven Munchenberg, chief executive of the organisation, commented: "Building this new switching system will require systems changes, information technology changes and staff training, which will impose costs on each and every financial institution."
However, he added that these costs are still likely to be significantly lower than other proposals, such as implementing full account number portability.
In June, ABA data revealed that banks saw a reduction in fee revenue from households of $835 million, an 18 per cent decline.
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