Increased number of customers switching accounts for better online services
Current Account Switching Service (Cass) is seeing an upsurge in account migrations based on quality of service rather than cash incentives, with challenger banks taking advantage of the trend.
Almost a quarter of a million changes (248,902) took place between October and December 2021. This is 36,302 more than in Q3 2021 and 59,629 more than in Q4 2020.
Nationwide (33,828) had the largest net switching gain in Q3 2021. Next came top digital providers Starling Bank (15,371) and Monzo Bank (6,498). Santander (4,372) and Virgin Money (3,377) take fourth and fifth place in net switching earnings.
While consumption change trends are typically influenced by cash incentives offered by individual participants, the latest Q4 2021 data also shows that non-financial service-related reasons were the most important factors for people promote their new current account once a change has been made. completed.
David Piper, Head of Service Lines at Pay.UK, owner and operator of the current account switching service, says: “We have seen digital first entrants continue to attract new customers as many seek out current account providers with high-quality online tools, such as in the form of mobile applications.”
The top reasons cited by people switching are: better online banking facilities (51%), sophisticated mobile or app-based banking systems (41%) and improved customer service (38%). Branch location (24%) and preferred account fees (23%) followed closely.