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Retail Banking

Account switching: making bank mobility easier for consumers

Published on 15 September 2025

Changing banks can sometimes feel like a daunting task. Yet in the EU, account switching – transferring accounts from one bank to another – is a free service designed to make the process quick and simple, without interruption of service.

Summary

    A right guaranteed by EU law

    Under European legislation, consumers legally residing in the EU have the right to open a payment account with basic services in any member state. If they wish to change banks, they can mandate their new bank to take care of all the administrative steps, from transferring standing orders and direct debits to closing the old account. By law, the process must be completed within 22 working days.

    European legislation ensures that consumers across the EU can access basic payment accounts and switch banks simply and securely.

    Hélène Lange

    Head of Business Coordination, ABBL

    Why switch banks?

    The reasons can be both financial and personal:

    • looking for lower fees or better offers,
    • seeking innovative services and digital tools,
    • benefiting from more responsive customer service for major life projects, such as mortgages or wealth management.

    As Hélène Lange highlights, “the human relationship can play an important role in choosing to switch banks, especially when clients value responsiveness and personal contact for significant projects.”

    In Luxembourg, the trend differs slightly: clients are often more multi-banked, reflecting the country’s international profile and the diversity of its resident population. Having accounts in different institutions also offers additional security, since deposits are guaranteed up to €100,000 per bank and per client by the Fonds de garantie des dépôts Luxembourg (FGDL).

    The ABBL’s perspective

    For banks, facilitating mobility must go hand in hand with robust Know Your Customer (KYC) and Anti-Money Laundering (AML) obligations. This balance is essential to ensure trust, protect clients, and safeguard the financial system.

    This topic was recently featured in Femme Magazine (September 2025, n°269), where Hélène Lange provided further insights into banking mobility.