Potential Costs and Benefits. This section initially summarises the potential costs and benefits to consumers of holding a Basic Bank Account. We have assumed that a Basic Bank Account includes those facilities described earlier in the report. Some of these costs and benefits can be quantified and others, whilst not quantifiable, are nevertheless important to the individual concerned. The areas of potential costs and benefits identified during this study are shown in the table below. Subsequent parts of this section of our report discuss the costs and benefits in further detail.
Potential Costs and Benefits. This section first summarises the potential costs and benefits to banks of the provision of a Basic Bank Account. The areas of potential costs and benefits identified during this study are shown in the table below. Subsequent parts of this section of our report discuss the costs and benefits in further detail
Potential Costs and Benefits. This section first summarises the potential costs and benefits to other stakeholders of the provision of a Basic Bank Account. The areas of potential costs and benefits identified during this study are shown in the table below. Subsequent parts of this section of our report discuss the costs and benefits in further detail Table 6.1: Summary: Costs and Benefits to Other Stakeholders Costs and Benefits to Other Stakeholders Costs or Disbenefits Benefits Utility Firms Potential loss of revenue from discounts, but probably not materially given cost savings Retailers Loss of revenue and interest for traders with cash-based business models, but not material in extent. Government Central/Local Reduction in transaction costs for social security payments and a reduction of potential fraud from paper systems. Easier, less costly local tax collections. Improved integration and recognition of the individual in society overall. Basic Utility Providers Reduction in transaction costs and increased system efficiencies Retailers Marginal increase in potential market for some retailers but not material in extent Financial Services (other than banks) Increased market for financial services products in the longer term There is no exhaustive definition of stakeholders beyond the banks themselves and their customers as it would necessarily include all organisations that could receive or send electronic or cheque payments to individuals. However, the principal stakeholders identified in the research are listed below: • Central and local government, • Basic Utility firms (energy companies, water suppliers), 123 While it can never be the case that all those currently excluded consumers will take advantage of such a facility, given that there will always be a number of individuals in transition (e.g. recently arrived migrants) and some individuals may continue to choose not to avail themselves of such facility for historic, cultural or educational reasons, our assumption is that a more universal provision of the right to a Basic Bank Account will increase the numbers using the facility even if the final penetration level achieved is uncertain and clearly will vary by country. • Retailers (store-based, mail order and internet-only), • Financial services providers other than banks (money lenders, insurance companies, investment management, pension providers). Of these, the principal other stakeholders affected are Central and Local Governments and basic Utility providers through the ...
