More than 70,000 Belgians find a new bank through Bankswitching
25 January 2018 - 4 min Reading time
On February 1st of last year, the Bankswitching service was revamped. Since then, customers have found it even easier to switch banks than before. With approximately 72,000 users over the past year, the user-friendliness of Bankswitching is evidently resonating with people.
To make a bank switch successful, banks rely on the cooperation of the other parties involved. When a customer changes banks, their creditors with direct debits (e.g., an electricity supplier) and recurring payees (e.g., their employer) must also use the new payment details.
This doesn't always happen promptly. Therefore, Febelfin calls on these other parties to update their information as soon as possible.
How does Bankswitching work?
When a customer wants to change banks, they only need to inform their new bank. From that point on, the new and previous banks manage the switch.
Since February 1, 2018, the customer no longer needs to personally provide their new account number to entities such as their employer or electricity supplier when changing banks.
Through the Bankswitching service, the new bank informs creditors with direct debits and recurring payees of the new account number. This saves the customer a lot of paperwork.
Since February 1, 2018, approximately 72,000 people have requested a bank switch through Bankswitching.
Why is Bankswitching so successful?
The high user-friendliness of Bankswitching makes it easier for customers to switch to a new bank. The barrier is much lower than before, prompting customers to switch banks more quickly, for various reasons. And that's good news for the customers!
How can Bankswitching be improved further?
To ensure a successful bank switch, banks rely on the cooperation of the other parties involved. By law, these parties are obligated to use only the new account number from the switch date. In most cases, this process goes smoothly.
However, some parties do not update the account number in a timely manner. In other words, they continue to use the closed account number, causing their payments to go unprocessed.
Furthermore, some parties request a new direct debit mandate when it's not necessary. The existing mandate is sufficient.
Parties can choose to receive notifications from a bank switch service either by post or through a digital channel. A digital notification has many advantages: it's easy, automated, and quick. Moreover, the other party typically receives the notification about two days earlier than by post.
Yet, currently, only 1% of all parties receive their notifications through a digital channel. Febelfin calls on these other parties to adapt as quickly as possible and fulfill their legal obligations. Choosing to receive notifications through the digital channel can assist them in this process.
