The online bank fears that this lack of awareness and confusion could mean sustain a reluctance among people to change their current account. To date, 43% say they have never switched current account provider.
Of those who claimed some knowledge of the changes to be introduced, only 23% could correctly identify what the changes will be.

Only 30% of people know that banks will be required to introduce a redirection service for standing orders and direct debits to ensure payments continue to be made when a customer switches provider. And just 29% know that a seven-day time limit for switching a customer’s account is to be introduced.

Mark Mullen, chief executive of First Direct, said:

“As a nation, we have never been keen to switch current accounts, even when we are not fully satisfied with the service we are receiving, due to the time and effort we expect the process to take.

“However, the improvements to current account and switching services are set to help change this attitude, giving consumers the confidence to switch when this is the best option for them, and make managing finances easier and more transparent.

“It is important that people are made aware of the changes to enable them to take advantage of the benefits.”