MSE News: Moving banks is getting easier – but don't wait to ditch and switch

Former_MSE_Helen · 11 June 2013 at 9:09AM

"The Payments Council has today announced further details to ensure customers can switch bank accounts within seven days..."

Read the full story:

Moving banks is getting easier – but don't wait to ditch and switch

Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.

pqrdef · 11 June 2013 at 3:25PM

Omg there's going to be a kitemark. Where are they going to put it? Is this going to start a trend?

pqrdef · 12 June 2013 at 3:48AM

Now, how about the FCA requiring that they only do soft credit checks, when there's no significant overdraft involved?

innovate · 12 June 2013 at 7:49AM

No chance. Why would any bank take on a completely unknown risk? Not having "a significant overdraft" (how does who define what this is?) on an existing account tells you nothing about how the account holder has been managing any other accounts they may have. It wouldn't even tell them how they managed the account to be transferred.

But may be I misunderstand what you mean by a "soft" credit check?

Geeky · 12 June 2013 at 7:40PM

Moving banks may be getting easier, but not moving branches.

My daughter wanted to move from a Lloyds branch which is being split off to one which is staying with Lloyds. She was told that she could not move at the branch, but would have to ring a premium-rate number to do it. After twenty-two expensive minutes, she had to give up - are they going to repay her these bank charges?

cepheus · 12 June 2013 at 9:05PM

Media release from Move Your Money UK:

2.4 million customers left the UK’s five biggest banks in 2012, according to new figures announced by Laura Willoughby MBE, at the City and Common Good debate in St Paul's Cathedral this evening (12 June 2013).

The figures, based on quarterly market polling publically available, show a mass movement away from the big banking groups, Lloyds, RBS, Barclays, HSBC and Santander. This represents a 5% point loss of the market share of current accounts, and demonstrates a massive response from ordinary people to a year of scandal by voting with their feet and switching who they bank with.

The news comes as a boost to local, ethical and mutual financial service providers who increased their customer base significantly.

pinkdalek · 12 June 2013 at 9:18PM

cepheus wrote: »

Media release from Move Your Money UK:

2.4 million customers left the UK’s five biggest banks in 2012, according to new figures announced by Laura Willoughby MBE, at the City and Common Good debate in St Paul's Cathedral this evening (12 June 2013).

The figures, based on quarterly market polling publically available, show a mass movement away from the big banking groups, Lloyds, RBS, Barclays, HSBC and Santander. This represents a 5% point loss of the market share of current accounts, and demonstrates a massive response from ordinary people to a year of scandal by voting with their feet and switching who they bank with.

The news comes as a boost to local, ethical and mutual financial service providers who increased their customer base significantly.

How many of those 2.4million customers switched from say for example RBS to Barclays?
How many of those millions switched from Lloyds TSB to Halifax, albeit a different bank, both parts of LBG?

Of the 2.4 million people who switched I bet you the majority switched to either Halifax, Nationwide or Santander.

innovate · 12 June 2013 at 9:54PM

That Media Release is full of lack of substance. Like: exactly where did these 2.4 million customers move to?

rb10 · 12 June 2013 at 10:32PM

innovate wrote: »

That Media Release is full of lack of substance. Like: exactly where did these 2.4 million customers move to?

Around two-thirds will have switched to another Big Five bank, with most of the rest going to Nationwide.

A fairly decent rule of thumb for where people switch is:

20% switch to each of Santander, Nationwide, Halifax and Lloyds
5% to each of HSBC and Co-op
2.5% to each of Natwest and Barclays
5% to everywhere else

(These figures are based on actual bank account switching figures during 2012).

innovate · 13 June 2013 at 8:53AM

Thanks rb10, massively more substance than the hot air release by Ms Willoughby MBE. Do you know, are these 2.4m who used the "switcher" services?

Would be interesting to know as well how many of the 2.4m actually closed their old accounts, and how many just added another account. I have an inkling the latter number will be rather high.

Quite amazing how the media are trying to drum it into people's heads that one current account is all "one" has.

rb10 · 13 June 2013 at 5:57PM

innovate wrote: »

Thanks rb10, massively more substance than the hot air release by Ms Willoughby MBE. Do you know, are these 2.4m who used the "switcher" services?

I believe that 2.4m is the number using switching services. Whilst there are a small number of people who switch their own SOs and DDs, switching services cover the vast majority.

innovate wrote: »

Would be interesting to know as well how many of the 2.4m actually closed their old accounts, and how many just added another account. I have an inkling the latter number will be rather high.

You are probably correct. There are lots of unused bank accounts around where people have switched away but don't bother to close their old account.

MSE News: Moving banks is getting easier – but don't wait to ditch and switch

Comments

Confirm your email address to Create Threads and Reply

🚀 Getting Started

Categories

Is this how you want to be seen?

Get our FREE Weekly email full of deals & guides - and it’s spam-free