Brits flock to supermarket current accounts

With bank fees and poor value current accounts hitting the headlines, Britons are set to switch to supermarket financial services in record numbers.

According to figures from comparison service Fool.co.uk as many as 17 million Britons are set to take out a current account from a supermarket.

"Ten years ago supermarkets started with store cards and quickly expanded into credit cards, personal loans and savings accounts," said David Kuo, head of personal finance at Fool.

"Today, supermarkets are as clever at marketing travel-insurance policies as they are at selling travel sweets. Additionally, with their low running costs, supermarkets can easily undercut other providers.

"They are already pinching customers from banks and in time could steal even more."

Three Britons in four (75 per cent) think supermarkets offer value for money on groceries, with half believing supermarkets have good value financial products as well.

And 50 per cent of UK residents would like supermarkets to offer an increased range of financial products, although very few (0.3 per cent) want a supermarket mortgage.

But it is current accounts where the real potential lies.

"It is reckoned that over 40 million adults in the UK have a current account. This is a massive unpicked cherry for supermarkets to target," said Mr Kuo.

"If three out of seven shoppers switch their loyalty from banks to supermarkets, as many as 17 million bank customers could jump ship."