Comment by embedding-shape
5 days ago
> The nice thing about the UK banking sector is that it is trivial to move banks.
Are there countries where this is a hassle? Now I've only had personal banking accounts in ~3 countries (so far?), so maybe I'm in a bubble, but in none of the countries has "switching banks" been more than basically create a new account, start using new IBAN for incoming transfers, move direct debits to use new IBAN and start using new card(s). Those last two were even automatic in the last move I did for a lot of stuff. Is it typically more difficult than that in other countries?
There are countries where, as a result of mergers, banking is now down to 3-4 banks, and they all have the same Android requirements, so switching won't get one anywhere.
If those countries are in the EU, you have the right to use a bank based in another EU country. The traditional incumbents will likely demand an in-country residential address (in direct contradiction of EU law). Which leaves the internet-only neobanks. I believe the only FOSS-compatible option is Wise, which has a modern web offering and does not even require that you install a native app. I understand N26 does, but it may work with Graphene. By contrast Revolut is a privacy-invading walled garden and should be avoided at all costs.
You’re right what the law says, but then you run into the Italian tax authority that will only accept an Italian IBAN to pay taxes.
Care to expand on Revolut's privacy invasion? Been using it as a secondary/tertiary account for 8+ years, and I haven't seen any specific intrusive practices, worse than in any other bank.
N26 works with Grapheme but won't let you create a new account on Graphene and will make you go through identity verification hell.
Right, but that's something else. Can't you switch between those 3-4 banks though? That's what I though was possible more or less all over the world.
If you are not a citizen, but an immigrant, it could be very true in some parts of the world.
I have a living permit and legal status in the country I live in, but only few banks open accounts to people like me, most just deny anyone but citizens of the country.
The ones that open all work in GrapheneOS though, so not big deal for me in my particular case.
They might even subcontract the same while label app company for their banking app, meaning that you get the same app every time with different logos.
Having to change IBAN is a hassle, and shouldn't have been necessary. In fact, I think some countries (Germany?) actually got that right, and allow you to take your IBAN with you when switching banks. Like keeping your phone number when switching telco.
Why is that so much of a hassle? In the US switching banks is just updating some numbers and reconnecting. The entire process can just be done online. In the US the only annoying part can be older companies that still do the account verification via a deposit and withdrawal, so it takes one whole day instead.
Also I don't think I would actually want it done automatically. Some banks have better saving rates, some banks offer higher interest on checking, some banks are much better for taking cash out internationally, some banks have more ATMs/branches around where I live, etc. I have a few different banks I move money around in.
Because there are about two dozen companies that do direct debits from that account. Some of them may be automatically informed of the change, but for most I'd have to figure out how to update my payment info. Similarly, friends and family might hold on to account numbers to send money back and forth. (Though that's probably less of a thing now, with all those apps for sharing convenient payment requests.)
Yeah, the Dutch banks really fucked us over by putting the bank code in the IBAN, so IBANs can't be moved to another bank.
Having the debits move to the new IBAN automatically had to be mandated and built. It doesn't just happen. In markets with large incumbent banks they have no incentive whatsoever to make switching easy.
In the UK we use https://www.currentaccountswitch.co.uk/
It automatically moves all of your Direct Debits, recurring payments, balance etc. It even redirects incoming payments to your old account to your new one.
It other countries it is a lot less trivial.
It can hurt your credit score.