Unews World
More than a million current accounts have been switched over the past year, as consumers sought slicker banking apps and better interest rates, new figures show.
The busiest quarter for activity occurred between July and September, seeing approximately 265,100 transfers. Over 111,000 of these switches took place in July alone, according to data from the Current Account Switch Service (Cass).
The service enables individuals to automatically move their current account, transferring payments to a new provider.
Some people move their money outside of Cass and so the figures provided do not include those switches.
Nationwide Building Society gained the highest number of customers switching to its current accounts, with more than 54,000 during the third quarter.
This was followed by Co-op Bank, with almost 9,200, Monzo and HSBC, who both ganined around 8,200.
On the other hand, customers were switching away from banks including Santander, which lost some 23,000 accounts during the quarter.
Barclays also lost about 18,300 to switches, and Halifax lost some 14,750, the Cass data showed.
Of those who switched accounts in the third quarter, more than two thirds said they preferred their new account, according to polling conducted by the service.
Online or mobile app banking was the top reason why consumers preferred their new accounts, at 44%.
It comes amid a drive by many high street lenders to improve and modernise their online banking, as they face staunch competition from digital banks over customer service.
Some 35% cited customer service as their reason for preferring their new accounts, while a third pointed to the interest earned.
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While interests rates have been coming down this year, some big banks have been offering rewards and incentives for people to open a current account with them.
For example, Barclays recently launched an offer which means some people could receive up to £900 if they switch both their current account and their Isa savings.
John Dentry, product owner at Pay.UK – owner and operator of Cass, said: “We’re immensely proud to have facilitated over one million switches per year since our launch.
“Especially in a time where personal finances are tighter than ever, maintaining a healthy and agile banking market is crucial.”
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