Lloyds Banking Group today announces its participation in the new electronic ISA transfer process.
The Group has been working with the British Bankers' Association (BBA) and other savings providers to adopt the process ahead of the new tax year.
From today, Lloyds TSB, Halifax and C&G will be able to send and receive cash ISA transfers electronically via BACS. These changes will speed up the transfer process by reducing the delays caused by sending cheques in the post.
Colin Walsh, managing director of savings and investment, Lloyds Banking Group said: "The industry wide delays experienced by customers last year were largely due to the outdated cheque and postal system on which the ISA transfer market was dependent. The move to electronic transfers is an important step forward but it is essential we continue to work together as an industry to improve the process."
Ahead of the new tax year, Lloyds Banking Group has conducted a thorough review of its own internal procedures to ensure the transfer process is as efficient as possible. As a result, the bank has invested in its tracking systems to provide customers with up to date information on the progress of their funds.
The BBA estimates that during the peak ISA season, up to 1000 transfers a day could move more efficiently thanks to electronic transfers.
Colin Walsh continues: "Given today's unprecedented low rate environment maximising your full tax free allowance has never been more important. As the UK's largest cash ISA provider, with a market share of 24 per cent, Lloyds Banking Group is fully committed to participating in the ISA transfer market, both through the use of electronic transfers and by allowing customers to transfer in historic ISA funds.
However, we have always said this needs to be an industry wide initiative and as and when other providers introduce the electronic transfer process more customers will be able to reap the benefits. I believe there will be significant improvements this year, but there is still work to be done."