Are these switching offers actually getting banks more customers?

Flobberchops

I think OP is absolutely correct to be skeptical of the actual value of switch incentives. In theory it's a gambit to woo customers towards fee-paying services, which these (post-packaged account) days is pretty much synonymous with consumer lending. In practice? I feel (but can't be sure) that those most likely to switch are the fairweather customers who are contributing the least to a bank's profit in the first place, and furthermore hoovering up all the switch bribes. You can easily circumvent pay-in requirements (just set up a circular Standing Order chain between your accounts) and you can easily open additional "sacrificial" accounts through online or app banking, so you don't even need to suffer the social awkwardness of lying to a bank advisor about why you need a second current account.



There will come a point, I'm sure, where the big players will wearily look at eachother and declare a truce, and the bribe money will dry up. Until then, fill your boots. You'd be a fool not to.

JuicyJesus

I've tried to stick with all the banks I've received incentives from for at least a little while, and don't do the thing of opening "donor" accounts to try and get as much as possible. I think that's only fair.

IvanDP

Flobberchops wrote: »

There will come a point, I'm sure, where the big players will wearily look at eachother and declare a truce, and the bribe money will dry up. Until then, fill your boots. You'd be a fool not to.

I. like many on here probably have little or no loyalty towards any bank, and will stay or switch whenever it benefits me.
As mentioned in an earlier post, banks don't seem to reward loyalty anymore these days, so why should customers stay?

Zero_Sum

JuicyJesus wrote: »

I've tried to stick with all the banks I've received incentives from for at least a little while, and don't do the thing of opening "donor" accounts to try and get as much as possible. I think that's only fair.

Of the switches Ive done theres been a reason to stay like 5% reg saver. Just done lloyds & looks like they also have a few perks. However Nat West I jumped as soon as they coughed up. Had no reason to stay & had a fairly poor service from my limited time with them.

born_again

IvanDP wrote: »

banks don't seem to reward loyalty anymore these days, so why should customers stay?

Same as lots of other companies.

While it's there take it. Will it stop, who knows. So long as marketing departments can put it up as a argument to make their job easier bribes will stay :rotfl:

JuicyJesus

Zero_Sum wrote: »

Of the switches Ive done theres been a reason to stay like 5% reg saver. Just done lloyds & looks like they also have a few perks. However Nat West I jumped as soon as they coughed up. Had no reason to stay & had a fairly poor service from my limited time with them.

Same here. They were p*sspoor.

Lloyds are good so far.