The bank plan presented to the Federal Government by consumer group Choice is largely a list of actions already undertaken or currently under review, Australian bankers said today.

Choice this morning released a list demands, including that the banks offer portable account numbers and remove barriers to people switching banks as a first step to building more competition into the industry.

According to the group, smaller banks, building societies and credit unions are offering the best banking deals, but the cost of moving accounts prevents people taking advantage of the deals. It said big banks are “gouging customers and offering shoddy service because they know it's too hard to change.”

But the Australian Bankers Association (ABA) said most of the bank plan is already dealt with.

“Just to give a couple of examples, the Federal Government has already announced a ban on exit fees and that the deposit guarantee will be made permanent. The Government has already put in place an account switching package and has asked former Reserve Bank Governor Bernie Fraser to examine other options to improve account switching,” ABA chief executive Steven Münchenberg said.

“We also have three Parliamentary inquiries currently underway - on banking competition, access to finance for small and medium-sized businesses and proposals to pass laws against price signaling. These inquiries will make recommendations to the Federal Government on actions which the committees think need to be undertaken by banks and other financial services providers.”

ABA said there are also reviews underway on ATM reforms. On complaints and systemic issues, the Financial Ombudsman Service (FOS) just this week released a report with tables showing dispute data for individual financial services providers and named the providers. For banks, there was a low rate of complaints.

“And as Choice would know, given their participation in consultations on changes to consumer credit and financial services laws, the Federal Government is working with banks, other financial services providers and other consumer stakeholders on implementing changes to improve disclosure around financial products and credit products,” said Mr Münchenberg.

“So a lot of Choice’s list is already being dealt with through various forums,” he said.