The UK's Financial Conduct Authority ('FCA') has
published its report into the impact of various methods used
by banks to help their customers manage their current accounts.
The FCA found that detailed annual summaries sent to customers
in relation to their current accounts often did not help customers
manage their accounts, avoid unauthorised borrowing or switch
between providers. This is despite the fact that many banks have
been sending such summaries out to customers for a few years as a
direct result of regulatory and governmental pressure to be more
open and transparent.
By contrast, the FCA found that the use of text messages and
banking apps did reduce the levels of unauthorised borrowing. In
fact, in cases where customers used both text alerts and app, there
was a 24% reduction in unarranged overdraft charges. This might not
come as a massive surprise. Unlike the annual summaries, a text
message is short and to the point. It is also sent to a mobile
phone
