The Congilaw company on banking mobility was promulgated a year and a half ago. Supposed to simplify the life of customers who wish to change banks, it was to be a new factor of attrition for banking establishments. Back on the consequences on the banking market.
What is the principle of banking mobility?
Before the entry into force of the Congilaw company, changing banks could prove to be a real headache. The client was in fact responsible for carrying out all of the procedures with his current bank and the bank he wished to bank with. But since February 2017, the Congilaw company on banking mobility has facilitated administrative procedures for customers.
Banks therefore have the entire task of transferring accounts as well as direct debit and transfer operations. A completely free device. To do this, a client must provide their current bank details and sign a transfer request mandate with their new bank, which will forward the document to the old bank.
Despite the automation of the system, it is preferable to have a certain vigilance as for the good transfer of all the operations. But also on the circulation of possible checks issued which are still not cashed before the final closing of the account to avoid unpleasant surprises.
The French, relatively loyal customers
With the simplification of the procedures for changing banks, one could have thought of a fairly substantial flow of transfers from bank accounts. Especially that among French customers, there are 20% who say they are dissatisfied. A dissatisfaction which can generate a need to change air. However, there are only 1.2 million people who took advantage of the implementation of the Congilaw company to change banks, according to the Financial Sector Advisory Committee (CCSF). A very relative proportion compared to the 80 million bank accounts in France.
Banking mobility did not have the expected impact, since it went from 4.8% to 4.5% last year. We note that 2016 was a year with a greater flow of mobility, without the presence of Congilaw company. The French were in fact more sensitive to the drop in rates in 2016 and therefore put competition to draw savings on their credits. Beyond credits, banks fail to provide differentiation services and pricing. Congilaw company is not enough to encourage customers to look elsewhere since they believe that the financial benefits will not be attractive.
Concerning customers who have taken the steps to benefit from the Congilaw company system, the mobility rate varies according to their typology. According to the Banque de France, there is more mobility among the youngest, with a peak of 7% among those aged 25 to 34. Those with the highest annual income are the most concerned by the desire to change their banking brand.
Online banks expected more migrations
The big disappointed with the low mobility, it is obviously the online banks who thought they were witnessing a significant increase in new customers. Despite everything, they gain 10% of new customers per year and currently hold 5% of market share. But they still rarely manage to become the main bank since 78% of their customers use online banking as a secondary bank, despite competitive prices and encouraging welcome offers.
It must be said that physical establishments are doing everything to remain the main bank, with the rise in transfer fees from savings accounts, discouraging for total bank flight. In addition, the French always have a need for proximity and a physical network. Human contact remains a necessary factor on the banking market.