The UK's Current Account Switch Service (Cass) is reporting growing traction with business users, as alternatives to the big banks begin to enter the market.
Initially pitched to consumers as a streamlined way to move accounts between providers, the service is increasingly being used to woo businesses away from the clutches of the Big Four lenders, who currently have an 85% market share.
During Q2, Cass saw 17,687 business account switches using the service - a positive increase from Q1 2019. The numbers may still be modest, but are indicative of a clear upward trend. Results show that the number of switches has more than doubled when compared to the same period last year, when just 8,000 business accounts switched.
The rise in business account switching comes as new entrants - bolstered by funding from the Banking Competition Remedies Board - arrive on the scene, along with the publication of the Service Quality Metrics - an FCA mandated practice providing information on current accounts. An SME targeted ad campaign across multiple media resources in February has also helped raise awareness.
Matthew Hunt, COO of Pay.UK, owner and operator of Cass, says: “It’s encouraging to see a rise in business accounts being switched using the Current Account Switch Service. It is very important to us that businesses know they can switch their accounts too, so we’re pleased to see the sizable increase in the number of SME’s making use of this. It is right that businesses can benefit from competition in this area, and we are committed to providing a switching service that enables this.”
Since Cass launched in 2013, it has recorded 5.9 million switches and re-directed 80.4 million payments. The service also reports a seven-day switching success rate of 98.9 per cent.