Why Bother to Be Better? Strategically Stagnant Personal Current Accounts

Banks are keen to supply current accounts because apart from direct income, they are more successful in selling a wide range of their financial services to customers who possess a current account. The UK market for current accounts appears to exhibit little customer movement and is dominated by 4 out of at least 140 suppliers, despite variable levels of service. Using prospect theory, attempts are made to explain why this market is so stagnant and to suggest how suppliers could be more successful at promoting change. Results suggest that changing the initial perceptions of customers will have more impact than trying to induce customers to change suppliers by promoting the benefits of an alternative bank