The Portuguese Competition Authority (AdC) has released a comprehensive study containing 17 recommendations directed at the legislator and the Banco de Portugal. These recommendations aim to lower search, comparison, and switching costs in the retail banking sector, thereby enhancing consumer mobility.

The study, titled 'Consumer Mobility in Retail Banking in Portugal,' identifies significant barriers that hinder consumers from making informed choices and switching banking providers. It emphasizes the importance of consumer ability to search for information, compare offers, and switch providers easily, which is crucial for fostering competition and improving outcomes in the financial sector.

Following a public consultation that gathered insights from various stakeholders, including the Banco de Portugal and consumer organizations, the AdC refined its recommendations. A notable addition is the suggestion for the Banco de Portugal to develop a multiannual strategy for open banking and open finance, which would include monitoring objectives and public indicators.

The study highlights that a significant portion of consumers (69%) have not sought information on current accounts from other banks in the past five years, indicating a need for improved access to information and services. The AdC's recommendations include harmonizing terminology, reforming the payment account switching service, and ensuring clear information from credit intermediaries.

Overall, the AdC's recommendations aim to create a more competitive and consumer-friendly banking environment in Portugal, ultimately benefiting consumers through better choices and services.