Brits rush to switch bank current account providers

Brits rush to switch bank current account providers

A week after its launch, early indications suggest that a new system designed to make it easier and quicker for Brits to switch their current account from one bank to another is proving popular.

The free service cuts account switching times down from their current average of 18 to 30 days to just seven days.

Nationwide Building Society is reporting a surge in the number of people looking to take advantage of the system, claiming a 79% rise in the number of people initiating a switch of their current account to the society compared to the same period the previous week.

With a major advertising campaign underway and many banks offering customers sweeteners, First Direct, Halifax and Santander have all also seen a significant rise in the number of people looking to move accounts.

Meanwhile, price comparison site Moneysupermarket has recorded a 45% increase in the number of people visiting its current account channel looking to find out about switching.

The surge in hits chimes with a poll carried out by the site before the new service went live which found that 42% of respondents would make a move once it became easier.

Phil Smith, Nationwide's head, current accounts, Nationwide, says: "If you are unhappy with the service you are receiving, or the terms of your current account, there has never been a better time to switch."

Comments: (2)

Steve Ellis
Steve Ellis - Finextra Research - London 25 September, 2013, 15:191 like 1 like

I'd love it to be true. But the fact they are only quoting %s of increase, not actual numbers, makes me wonder whether the actual number isn't that big (against the total customer base).

Nationwide would see itself as a virtuous alternative to the large retail banks - and therefore a net winner from these changes. More interesting is how it affects churn among the major banks. It might be that there are many more movers but relatively little net change among the banks.

Matt White
Matt White - Finextra - Toronto 26 September, 2013, 14:08Be the first to give this comment the thumbs up 0 likes

The Payments Council has given us some numbers today: 35,000 have started the process of switching since launch.