Finance industry representatives have been positive about to the Government's plan to facilitate easier account-switching with most agreeing that it would enhance competition without imposing a heavy cost burden on the industry.Under the proposal, customers would sign a document indicating the switch to their chosen new financial institution and authorising that institution to execute the related processing work on their behalf. The new institution would have the authority to deal with the current provider.The Australian Bankers' Association said the industry would work with the Government to develop the new scheme.ABA chief executive Steve Munchenburg said the costs would be "relatively small". He said he did not expect to see customers charged for the service.The proposal to explore options to help customers switch banking service providers more easily was included in the Government's December 2010 banking policy package, A Competitive and Sustainable Banking System. The Government asked the former Reserve Bank governor, Bernie Fraser, to review the options.Fraser's report, Banking Services: Cost-effective Switching Arrangements, was released by the Treasurer yesterday. The Government has endorsed the recommendations of the report and will put together a working party with a view to having a new switching service in place by July next year.RaboDirect general manager Greg McAweeney said: "This represents a step towards fairer banking for all Australians. We are in total support of Fraser's recommendations and see it as a win for all banking customers."Consumer group Choice said the reforms were a significant step forward. The organisation said full account number portability was "the ultimate goal". However, Fraser has rejected the idea of account number portability as being too costly and complicated. He said it would involve the replacement of the bank, state and branch (BSB) numbering system, and a "wholesale revamping" of the existing payments infrastructure along with the systems of the financial institutions that interface with it. Fraser said: "It would be a major and costly undertaking. It would require the creation of a central account registry to hold relevant details of all customer accounts. It would require a massive change to the existing payment infrastructure."The credit union and building society association, Abacus, said: "Mr Fraser has conducted a thorough consultation with consumer groups and industry and come up with a sensible approach to improving the ability of consumers to switch their financial institutions."