Post Office to offer current accounts

Post Office move to offer current accounts is expected to boost the competition in the banking industry.

12:26 13 April 2013

The Post Office is set to offer current accounts in the UK. Provided by Bank of Ireland, the new account will be offered in some areas before it will be fully launched in 2013.

Although there were very few details about the new account, industry analysts are already looking forward to it. They believe that Post Office’s move to offer new accounts will boost the competition in the industry and will make banks really compete to attract and retain customers.

According to Office of Fair Trading, RBS, Lloyds, Barclays, and HSBC held 75per cent of the market. Because of this, the industry lack dynamism and customers are not getting enough choices. In addition, customers don’t have enough motivation to switch banks.

The Post Office, which has 11,500 branches, haven’t released information as to how much interest it will offer or if it is going to charge for a packaged account. However, it claims that it fully understand the needs of their target audience.

In a statement, it said: “We have carried out extensive research into the current account market and the findings tell us that customers want simplicity, transparency and good value for money.”

Experts and industry leaders are excited about the announcement. They believe that this will bring major shake-up in the industry and will give customers more choices.