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Current account switching declined in 2016 in spite of raised awareness

Published: 27/01/2017 by Comments

Current account switching declined in 2016 in spite of raised awareness

Less people changed to a new bank in spite of evidence of savings of an average of £92 over 2016, it has been revealed in data held by Bacs.

The slowdown in bank account switching happened despite the awareness raising campaigns run by banks to show how straight forward a process the changeover can be.

Payments body Bacs revealed figures indicating that more than one million bank accounts were switched last year -  a drop in 23,500 from the year before.

The UK competition body had carried out an investigation showing that customers could benefit from shifting to another account, to the tune of an average of £92 per year, dependent on deals available on alternative accounts.

Most recent figures summarise consumers using a current account switching service available in market in 2013, which is designed to streamline the process, reducing the process time for the switch from 30 days to seven.

Bacs declared that by November 2016, 78% of people were aware of the service and its availability – an all-time high.

The Competition and Markets Authority said, in a recent statement, that it was in the process of attempting improvements in service provision, as per Bacs recommendation.

In the meantime, figures from banks and building societies now reveal who’s at the top and bottom of the scale in terms of consumer switching between April and June of 2016.
Santander, Nationwide and Halifax performed best, followed by Tesco Bank and TSB.

Barclays, HSBC, Lloyds Bank, NatWest and RBS lost a number of customers to their competitors.

Photo credit: Karen Bryan

Colette Lamb
News article by:
Colette Lamb

A business sector writer with over 15 years of experience working in the marketing, commerce and law sectors' internationally and in the UK. Interests include composing music and other creative communications such as art and dance therapy.

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