The new report, which is based on a survey of over 2,000 people, notes that if consumers are to be treated fairly they will have to start paying for services.
According to Reuters, several major banks offer free banking in addition to paid-for accounts and perks such as travel insurance, etc.
However, this policy remains a big controversy. Some politicians, regulators as well as bankers want this policy to be ended. According to them, ending this practice will mean that banks will not be compelled to draw profits elsewhere from clients and will pave way for transparent charges, boost competition and service levels.
PwC retail banking leader Steve Davies was quoted as saying by the news agency: "UK current accounts are not free at all and are paid for through overdraft charges, penalty fees and uncompetitive or zero rates of interest.
"The free banking model stifles innovation and competition."
The policy fails to reward innvoative banks as recovery of costs becomes a major hurdle.
A majority of respondents, according to PwC’s survey, know that free accounts can carry hidden charges but still one in two said if an upfront fee was introduced, they may shift to another bank.
Nearly two-thirds of the respondents were prepared to pay nothing and 27% said that they were not ready to pay more than £10 a month, the report concluded.
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Image: PwC office in Cairo, Egypt. Photo: courtesy of My Wound
