Yahoo Finance Current account switching accelerated in final quarter of last year, data shows
Nearly a quarter of a million current account switches took place during the last three months of 2021, as the number of customers ditching their bank to move elsewhere accelerated.
Some 248,902 accounts were switched between October and December.
This was 36,302 more than in the previous quarter and 59,629 more than in the same period a year earlier.
Within the latest total, 94,822 switches took place in October, marking the busiest month since the UK coronavirus lockdowns started in March 2020.
The figures were released by the Current Account Switch Service (Cass), which said 7.8 million moves have been processed since the service launched in 2013.
The scheme automatically moves payments over from someone’s old account to their new one to help the process go smoothly, and a guarantee promises that customers will not be left out of pocket if something goes wrong with the switch.
David Piper, head of service lines at Pay.UK, owner and operator of Cass, said: “Performance and usage of the Current Account Switch Service remained strong in the final months of 2021, with thousands continuing to benefit even in the face of the growing challenges presented by the emergence of the Covid-19 Omicron variant.
“We also saw digital-first participants continuing to attract new customers as many seek current account providers with high-quality online tools, such as mobile apps.”
In a sign of competition ramping up, some banks have launched new “cash to switch” offers this week, including a £150 offer from NatWest and £140 from Santander.
The Cass report also found that Nationwide Building Society made the highest net gains from customers using the switching service in the third quarter of 2021.
Nationwide was followed by digital challengers Starling Bank and Monzo, with Santander and Virgin Money placed next.
Cass said the service aided customers from Tesco Bank and M&S Bank, who used it to switch away as those providers started withdrawing from the current account market.
The figures show HSBC made a net lost of 19,760 switchers in the third quarter of 2021 – a total which includes M&S Bank brand switches.
Several other banking giants, including Halifax, Barclays and NatWest, also made net switching losses. TSB made a net loss of 8,175.
Cass’s consumer research found the top reasons for customers switching generally included for better online banking facilities, a sophisticated mobile banking app and improved customer service.
The location of branches and preferable account fees were also viewed as important.
Of those who completed a switch in the fourth quarter of last year using Cass, 69% said they prefer their new account and just 3% said it is worse.
Here are the net gains or losses made by banks and building societies in the third quarter of 2022 from people using the Cass scheme. The figures include people, small businesses and small charities switching. They do not include customers switching outside the scheme.
– AIB Group UK (includes the First Trust Bank and Allied Irish Bank (GB) brand switches), minus 769
– Bank Of Ireland, minus 471
– Bank of Scotland, 1,618
– Barclays, minus 4,722
– Co-operative Bank (includes Smile brand switches), minus 2,717
– Danske, 199
– Halifax, minus 4,548
– HSBC (includes First Direct and M&S Bank brand switches), minus 19,760
– Lloyds Bank, 2,835
– Monzo, 6,498
– Nationwide, 33,828
– NatWest, minus 5,341
– RBS (includes Adam & Company, Coutts and Isle of Man brand switches), minus 2,174
– Santander, 4,372
– Starling Bank, 15,371
– Tesco Bank, minus 19,657
– Triodos Bank, 792
– TSB, minus 8,175
– Ulster Bank, minus 30
– Virgin Money, 3,377.
