Current Account switch data April - June 2024

steven141

This is an interesting read
https://news.stv.tv/world/jump-in-current-account-customers-ditching-and-switching

The number of current account switches taking place has jumped by 10% over the past year, new figures show.

Some 313,293 switches facilitated by the Current Account Switch Service (Cass) took place between April and June.

Over the past 12 months, the service has enabled 1,411,553 switches, marking a 10% increase compared with the previous year.

The latest switching data indicates that NatWest, Royal Bank of Scotland (RBS), TSB and Lloyds Bank made the highest net switching gains between January and March this year among customers using the service.

NatWest had the highest net switching gains with 60,497, followed by RBS (13,210), TSB (11,640) and Lloyds (11,076).

In total, 10.9 million switches have taken place since Cass launched in September 2013.

The service aims to take the hassle out of switching banks, by automatically moving payments to the new account.

So far, the service has redirected 152.7 million payments.

John Dentry, product owner at Pay.UK, owner and operator of Cass, said: “The continued upward trend in current account switching underscores the importance that consumers and businesses place on finding the right banking partner.

“This quarter’s switching data reflects not only a robust and competitive market but also the trust and confidence that end users have in the Current Account Switch Service.

“As the UK economy shows signs of recovery, it’s encouraging to see that the service remains a critical tool for those looking to switch their current account.

“Whether for individuals or small businesses, the ability to switch accounts through a process that is quick, free and easy ensures that everyone can find a current account that best serves their needs, whatever they may be.”

Here are the net switching gains or losses made by banks and building societies between January 1 and March 31 2024. The figures do not include switches made outside Cass:

AIB Group (includes includes Allied Irish Bank Britain and Northern Ireland brand switches) -minus 556

Bank of Ireland – minus 439

Bank of Scotland – minus 1,361

Barclays – minus 38,779

Co-operative (includes Smile brand switches) – 2,923

Danske – 65

Halifax – minus 21,174

HSBC (includes First Direct brand switches) – minus 186

JP Morgan Chase – minus 7,273

Lloyds Bank – 11,076

Monzo – minus 1,838

Nationwide – minus 7,301

NatWest – 60,497

RBS (includes Coutts and Isle of Man brand switches) – 13,210

Santander – minus 11,621

Starling Bank – 1,813

Triodos Bank – 161

TSB – 11,640

Ulster Bank – 2,632

Virgin Money – minus 5,796

steven141

I’m curious as to what has driven such a high number of people to switch into NatWest and Royal Bank of Scotland other than the switching incentive earlier this year.

It also looks good for Lloyds Bank, I’m guessing people value the Club Lloyds account. The Bank of Scotland and also Halifax figures indicate that people aren’t happy. They basically offer the same product as Lloyds Bank but don’t offer an account with perks like Club Lloyds (especially Bank of Scotland). Halifax offer their reward account. 

I’m guessing the mass exodus of switches away from Nationwide is due to those members that didn’t get a say in the Virgin Money acquisition. 

The figures at Chase don’t look promising. I wonder if they will put a stop to their accounts being used for “dummy accounts”. 

Santander I can only put down to poor service and support. Plus a lot of things need done in a branch but they don’t have many branches now. 

Barclays no surprise there with the poor service and glitchy app. 

Monzo I’m surprised as a lot of people go on about them being so great. 

The co-operative Bank and TSB made decent gains as well. 

Section62

steven141 said:

...

I’m guessing the mass exodus of switches away from Nationwide is due to those members that didn’t get a say in the Virgin Money acquisition. 

...

Perhaps more likely (if anything policy related) members with a current account who missed out on the £100 unfairer share due to the arbitrary rules.

In reality I don't think much can be read into any of the figures - the switch data appears to be heavily driven by which banks were offering switching incentives during the period, and as a consequence some of the losses could be attributed to customers moving away again in the following period(s) if there are other suitable incentives elsewhere.

Nationwide (although not alone in doing so) have been buying current account customers, if they don't keep up the incentives to join then it is inevitable there will be a net loss at some point later.

eskbanker

steven141 said:

This is an interesting read
https://news.stv.tv/world/jump-in-current-account-customers-ditching-and-switching

Anyone interested in the monthly and quarterly switching statistics could do worse than accessing the data, plus additional commentary and trend analysis, at its original source:

https://www.wearepay.uk/what-we-do/switching-services/current-account-switch-service/current-account-switch-service-statistics/

steven141

eskbanker said:

steven141 said:

This is an interesting read
https://news.stv.tv/world/jump-in-current-account-customers-ditching-and-switching

Anyone interested in the monthly and quarterly switching statistics could do worse than accessing the data, plus additional commentary and trend analysis, at its original source:

https://www.wearepay.uk/what-we-do/switching-services/current-account-switch-service/current-account-switch-service-statistics/

Thanks for this, makes the figures easier to read. 

WillPS

Interesting that Barclays have lost so much custom and yet are seemingly responding by making their mass market reward offer worse. By contrast Nationwide and Natwest Group seem to be better able to hold on to their recent acquisitions.

Halifax continue to slowly lose custom through CASS having gone an uncharacteristically long period without offering a switch bonus, although it's interesting that they still have quite so much incoming traffic for lack of that stimulus.

ThePirates

£5 monthly reward from Halifax helps!

WillPS

ThePirates said:

£5 monthly reward from Halifax helps!

It could be but there's no need to CASS for that tho. In fact, it doesn't really even help, as the monthly fiver depends on either savings or debit card spend.

Perhaps I'm not giving Halifax enough credit and the £5/month does in fact make it a useful main account for some. I've actually found myself using Halifax for less of my day-to-day banking since they changed the scheme in 2020 (not that I'm complaining!).

ThePirates

I don't use it as my main account but transfer money through each month for the £5.
I do use their Clarity Credit Card for overseas use though.

HillStreetBlues

I expect many of the -7,273 for Chase is the switching of burner accounts. Chase is currently -2 for me, one in, three out, but it's still my main bank account.