At some point in our lives we’ve all cursed our banks. Whether it be because their mobile app is down or they never seem to be able to call you back when they say they will, we’ve all been unhappy with the level of service being provided at some stage. Most people see the time and effort it would take to switch banking providers as too great; exceeding any potential benefits they get from a new provider. This perception is inaccurate. Three years ago the Australian government introduced the Tick ‘n’ Flick program, designed to make switching banks less painful than being put on hold by your current bank yet again.
What is Tick ‘n’ Flick?
The Tick ‘n’ Flick program works under the premise that you can go into a new banking institution and provide them with your old bank details, and they will take care of switching automatic payments. The new provider takes control of reorganising all direct debits and credits from the last 13 months to save you that stress.
A great program in theory but it hasn’t taken off in a huge way since 2012; most likely due to low promotion by banks scared of losing all their business. Only 330 people a week are using the scheme. Why? Nobody knows it exists.
In August of 2014 440,000 bank accounts were opened with 240, 000 closed in the same period. This is a massive discrepancy to the 1,300 people that used Tick ‘n’ Flick that same month.
Banks have publicly justified not promoting the program and lobbying to have it scrapped by saying that consumers are happy with their existing bank and that there is no demand for it, turning to usage figures for support. A broader look at all opened and closed accounts suggests otherwise.
Why you might consider changing financial institutions
There are endless reasons why you might be itching to change from Bank A to Bank B but are hesitant due to the difficulty in doing so. These might include:
- Bad customer service
- ATM withdrawal fees
- High monthly account fees
- Location convenience
- Clunky online experience
- Switching incentive schemes from rival banks
- Better interest rates at Bank B
Finding a financial institution that works best for you and your needs is important so that you aren’t losing money to banks unnecessarily. Being afraid to change banks because of the hassle it causes is something you no longer need to worry about thanks to this little-known scheme.
If you are looking at ways to restructure your finances and get on top of your debt, Life After Debt can help. Contact our team today to arrange an appointment on 1300 237 669 or here.