Current Account Switching Rises in Popularity, as Consumers Remain Focused on Finding the Right Bank

The UK’s Current Account Switch Service has revealed that it facilitated over 1.4 million in the past 12 months, up 10 per cent from the previous year, with the latest stats offering a positive outlook for the market. The Current Account Switch Service explained that the continued upward switching trend highlights that finding the right bank or building society is still a priority for UK consumers. Figures from the Q2 2024 Dashboard reveal that the Current Account Switch Service enabled 313,293 switches between April and June 2024 – taking its total number of switches since its launch in September 2013 to 10.9 million. Online or mobile banking (43 per cent) remained the top reason people preferred their new account, a consistent trend across the last 12 months. Following this, interest earned (37 per cent) was the second most important reason, with customer service (29 per cent) and location of branches (24 per cent) close behind. The second quarter of 2024 saw interest rates stabilise while switching incentives remained sporadic. Overall, the Service explained that it believes the new figures provide a ‘positive outlook’ on the long-term health of the current account market. John Dentry, product owner at Pay.UK, owner and operator of the Current Account Switch Service, 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.”

Switching remains popular 

April emerged as the busiest month across the second quarter, with 135,892 switches. Small business and charity accounts also saw high switching levels, with 6,214 switches over the quarter, up seven per cent on the same quarter last year (5,814). End user data, which is three months in arrears, shows that from January to March 2024, NatWest had the highest net switching gains with 60,497, followed by RBS (13,210), TSB (11,640) and Lloyds (11,076). During this period, 79 per cent of people were aware of the Service and 91 per cent were satisfied with their switch, rising from 78 per cent and 90 per cent in Q1 2024 respectively. The Service also boasted that 99.7 per cent of switches were completed within seven working days, up from 98.7 per cent in Q1 2024. The Current Account Switch Service facilitated 1,411,553 switches in the past 12 months, a 10 per cent rise from the 1,277,484 switches recorded in the 12 months prior. Over a decade since its launch, the Service has also successfully redirected around 152.7 million payments.