Challenger banks ‘winning’ from current account switch

Across 2018, 929,070 switches were made - down on the 931,956 of 2017Across 2018, 929,070 switches were made - down on the 931,956 of 2017
Across 2018, 929,070 switches were made - down on the 931,956 of 2017
The number of current account customers ditching their old bank and switching to a new one jumped towards the end of last year, figures show.

The latest findings also suggest that customers are continuing to use the seven-day current account switch service to move to newer, mobile banking challengers such as Monzo and Starling Bank while more established high street names see customers looking elsewhere.

In the final three months of 2018, 235,648 account moves were successfully completed using the seven-day switching service as customers were perhaps fed up with their existing provider or inspired to move to a new one.

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This figure was up by 22% when compared with 193,621 switches in the previous quarter.

The figures, from the current account switch service (Cass) show that, across 2018 as a whole, 929,070 switches were made - slightly down on the 931,956 the previous year.

Launched in 2013, the scheme has cut the length of time it takes to change banks and removes a lot of other hassle, by automatically moving payments over to the new account.

Payments body Bacs, which oversees the service, also released data provided voluntarily by banks and building societies showing how many switches were made between July 1 and September 30 2018.

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It showed that TSB, which suffered high-profile problems last year that left people locked out of their accounts, made a net loss of 16,142 switches during the period.

NatWest, RBS, Halifax, Lloyds Bank and Barclays were also among those who recorded net switching losses between July and September.

Meanwhile, Nationwide Building Society, HSBC and Santander were among the “winners” in terms of customers using Cass to move accounts during the period.

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