Account Number Portability

Abstract

With the results of this study, ACM wishes to contribute to the cost-benefit analysis of EU-wide account number portability that the European Commission will carry out in 2019. ACM’s contribution has two pillars:First, ACM had research firm Decisio develop a framework with which each EU member state is able to get as complete a picture as possible of the direct and indirect benefits of account number portability. This framework takes into account the specific market conditions in each member state, such as the level of technological innovation (FinTech), differences in price levels, and differences in switching rates. The framework has been applied to the Dutch situation.Second, ACM has fleshed out various variants of account number portability. The total costs of number portability strongly depend on how it will be introduced in Europe. Two variants of account number portability cost less than the most common variant, because banks and other market participants in the payment chain will only need to make few adjustments in those variants. ACM prefers ‘alias portability’, which is a variant in which consumers and businesses pay using a unique alias, such as a social security number or the registration number with the Chamber of Commerce.In the study, ACM also makes recommendations to the European Commission and the Dutch Ministry of Finance.