The humble current account has long played a supporting role to the more glamorous and lucrative stars of the banking world, but it is now moving on to the centre stage. Developments in regulation and technology have increased the profile of the current account within the payments industry, but while banks are currently directing proceedings, there are other players waiting in the wings who can equally provide a basic transaction account.
Most transactions go in and out of the current account, which makes it the stickiest of products for the banking industry and forms the main relationship a bank has with its customers. In developed markets – particularly in North America and Europe – cards have been a key instrument of current accounts for retail payments, but now that business model is undergoing major changes.
