We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Are these switching offers actually getting banks more customers?

Ben8282
Posts: 4,821 Forumite


I was just wondering if, at the end of it all, the banks are actually going to see a net increase in customers as a result of these switching offers or if equal numbers of customers are going to switch from bank A to bank B and from bank B to bank A so that the banks just end up with the same number of customers (excluding genuine new non-switch customers)?
0
Comments
-
Figures for gains and losses by bank are published quarterly, the most recent being last week's, at https://www.wearepay.uk/wp-content/uploads/2019/10/Current-Account-Switch-Service-Q3-2019-Dashboard-24th-Oct.pdf
They're issued in arrears so these cover Q2 rather than Q3, but the relative success of the likes of HSBC, NatWest and Nationwide seems to suggest that switching incentives do have a positive effect, although a few thousand here and there isn't significant when the major players have current account populations in the millions....0 -
there was an article about this in thisismoney recently https://www.thisismoney.co.uk/money/saving/article-7605331/NatWest-sees-boost-current-account-switchers-successive-cash-bribes.html
and a brief comment at the end that -- "Barclays has lost a net figure of nearly half a million current account switchers since CASS started recording the data."
they don't say how many accounts they had to to start with though. does anyone know where to find this out?0 -
there was an article about this in thisismoney recently https://www.thisismoney.co.uk/money/saving/article-7605331/NatWest-sees-boost-current-account-switchers-successive-cash-bribes.html
and a brief comment at the end that -- "Barclays has lost a net figure of nearly half a million current account switchers since CASS started recording the data."
they don't say how many accounts they had to to start with though. does anyone know where to find this out?
https://assets.publishing.service.gov.uk/media/53c834c640f0b610aa000009/140717_-_PCA_Review_Full_Report.pdf suggests that their market share was largely unaltered at this sort of level between 2007 and 2013.
So half a million sounds like a lot but is 'only' about 4% of their customer base....0 -
I'm surprised that banks pump money into these incentives when they can't even sort their systems out to handle the uptake. e.g. Lloyds (referring to not being able to complete switch form) "we don't currently have a date for when this fault will be rectified" and Marks and Spenser (referring to not being able to do things online) "we've no plans to change this at the moment.".Keef - Sheerness, Kent UK0
-
The winners just happen to be... banks running incentives around this time. So no surprise there then!.....under construction.... COVID is a [discontinued] scam0
-
keef-WhatStandards wrote: »I'm surprised that banks pump money into these incentives when they can't even sort their systems out to handle the uptake. e.g. Lloyds (referring to not being able to complete switch form) "we don't currently have a date for when this fault will be rectified" and Marks and Spenser (referring to not being able to do things online) "we've no plans to change this at the moment.".
Lloyds switch worked perfectly for me so I suspect if it only affects a small minority that it's not a major priority for them. M&S not having an app is a pain but tolerable for the 5% RSRemember the saying: if it looks too good to be true it almost certainly is.0 -
I presume you did the Lloyds switch from a PC and used the TAB key? Might have to borrow a laptop.Keef - Sheerness, Kent UK0
-
Well from personal experience they do work as I have just switched our joint current account to Natwest which I probably would not have done has the £150 incentive not been a factor, so Natwest +2 - Santander -2!
I also think it is increasing the total number of current accounts. I now have five and would not still have five if it was not for the switching incentives as most are as a consequence of switching in the past, and I am now retaining them so I have eligible donor accounts to switch from in the future!.
How many of the new accounts are actually providing worthwhile revenue to the banks in the form of fees etc. is a different story!• The rich buy assets.
• The poor only have expenses.
• The middle class buy liabilities they think are assets.
Robert T. Kiyosaki0 -
Once had to listen to our CEO wax lyrically how we had beat the new account target in 8 months. But come the end of year figures we were pretty much the same number of customers as the start of the year. Funny but he did not mention the previous statement & totally side stepped any question on customer retention over bribing new customers.
Winners = Switchers & marketing teams who say Look how well that promotion did.
Loser = Non switchers & staff who have to do all the work for nothing.Life in the slow lane0 -
Perhaps when your bank offers switching incentives to new customers existing customers should ask for a loyalty payment?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 348.3K Banking & Borrowing
- 252.1K Reduce Debt & Boost Income
- 452.4K Spending & Discounts
- 240.8K Work, Benefits & Business
- 617.1K Mortgages, Homes & Bills
- 175.6K Life & Family
- 254K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards