Customers' bank accounts should be portable so they can easily switch to another provider if their bank goes bust, the head of the savings safety net suggested today.
Mark Neale, chief executive of the Financial Services Compensation Scheme (FSCS), told an insurers' conference that more thought should be given to ways to help give customers some continuity if their bank goes under.
The call comes after consumer group Which? found last month that around two-thirds of people support the introduction of portable account numbers.
The consumer group also found that six in 10 people are more likely to switch banks if they did not have to change their details and three quarters believe that this would make the process easier.
Speaking to the conference in London, Mr Neale said: "We need to think about new ways to make it even easier for deposit guarantee schemes to secure continuity for consumers.
"For example, so called portable bank accounts might provide an option for transferring accounts to another provider. That would give the consumer uninterrupted service. It is something we should think about."
Mr Neale said he would "welcome a world in which accounts are portable so that we could simply move the account with the compensation in it from an insolvent to a solvent bank".
Which? has argued that portable account numbers would remove the need for people to change existing direct debits and standing orders and make switching banks as easy as changing mobile phone providers.
It has also said it could lead to a smaller chance of taxpayers bailing out the banks again because the regulator could shut down a failing bank and transfer personal and business accounts to another bank.
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The consumer group organised a meeting involving banks and members of the Treasury Select Committee last month to discuss the possibility of introducing portable bank accounts.
The FSCS covers savings up to £85,000 for single accounts and £170,000 for joint accounts if a financial institution goes bust.
New rules came into force in August which meant that banks, building societies and credit unions must display stickers and posters publicising the compensation scheme and telling customers how much of their money is protected.
The FSCS ran its first TV advertising campaign last year to raise awareness, but later said the impact of this had been "limited".
Mr Neale said that only about half consumers are aware there is a protection scheme and just third are aware of FSCS.
He told delegates from around the world: "We need to do more to raise awareness. FSCS now pays the vast majority of people back within seven days of a firm going bust."
He added: "But awareness is only half the battle. Consumers also have to believe you can deliver and, crucially, that you can deliver quickly so that they can go on living their lives. A promise that the cheque's in the post is not enough."
Mr Neale was speaking at the annual conference of the International Association of Deposit Insurers (IADI), which ends tomorrow.
