Current account switching data - comment needed please

Journalist: Samantha Downes, Currently at the I (business editing some Sundays (freelance) and Mortgage Solutions

ended 27. April 2022

The Current Account Switch Service has completed over eight million switches since launch and redirected over 120 million payments -  196,964 switches took place between January and March 2022, a 41% increase on the same period in 2021

·         Customer switching data, which is three months in arrears, found that Santander, Nationwide and Starling Bank had the highest net switching gains between October and December 2021.

I'm looking for comment on whether this is good news - or can more be done to tell consumers about their right to ‘switch’.

4 responses from the Newspage community

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Adrian Kidd
Chartered Wealth Manager at EQ Financial Planning
"This is good news but lots more switching needs to be done. People are likely to still be put off by the myth that it's difficult and time-consuming and you'll miss direct debits and get bounced Direct Debits, which costs money but this is fake news. The current account switching service is guaranteed to alleviate any worries you may have. This could save you annual fees and also there are some good incentives (£150) once switched currently, as well as better rates of interest and cash back on bills. I've used it myself and it worked like a charm."
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Marcus Wright
Managing Director at Bolton Business Finance
"The Current Account Switch Service has been a massive success since it was launched, making switching bank accounts so much easier. I worked in a high street bank before this service started and moving your bank account was nearly as stressful as moving house. Yes, really. I still think there could be some room for improvements around how overdrafts are dealt with but overall it works well in my opinion."
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Joshua Gerstler
Chartered Financial Planner / Owner at The Orchard Practice
"Bank customers are finally starting to wake up to how easy it is to switch banks. With more banks closing their local branches, we may see more people start switching to banks that are retaining their high street presence. Equally, we may see more people turn to banks that offer a fully online service such as Starling. Inertia still plays a big part in this and we need to remind people that they do not have to stick with their bank if the service is not good enough. It might not be a bad thing if banks were required to remind customers annually that they are free to switch whenever they want to. That would keep them on their toes."
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Fanny Snaith
Owner at Fanny Snaith - Certified Money Coach
"Switching current accounts often offers great rewards. To receive £150 for switching banks is a no-brainer but is that THE reason to switch? Banks are here to serve us. We want flexibility, a great website and an easy-to-use app. The challenger banks are offering pots and spaces, a fabulous idea that allows us to tuck money away which is still easily accessible but out of the view of our main current account. This is revolutionary. If banks give us what we want, we will switch. Telling us about it is up to the banks. Keeping an ear out for deals or facilities and deciding who we can trust is up to us, the customer. Both banks and customers could do with a bit of waking up in my opinion."