Switching winners

Today, 30 April 2020, saw the publication by Pay.UK of the Current Account Switch Service Dashboard covering the period 1 January to 31 March 2020.

The Current Account Switch Service (CASS) has completed 6.6 million switches since launching in 2013, 280,520 of which took place between January and March 2020.

With much talk of the rise of the challenger bank and the competitive current account market the quarterly dashboards published by Pay.UK always provide an interesting insight into the performance of the UK’s current account providers.

In this quarter’s dashboard we find that:

  • Despite the impact of COVID19 over 133k account switches were made using the CASS service in March 2020 – the third highest month since CASS was launched in 2013.
  • Business account switches using the CASS service increased by 52% during Q1 with a total of 8,119 business account being switched.
  • 95 million payments have been successfully switched from the closed ‘old’ bank to the ‘new’ bank.
  • 99% of instructions to switch a bank account using the Current Account Switch Service were successfully completed in the 7 day service promise.
  • 79% of the population are aware of the CASS service and 92% are satisfied with the service when they use it.
  • 49 bank brands offering current accounts in the UK participate in the switching service although, as we found out with N26’s withdrawal from the UK, do check with your bank before you try and switch.

Winners and losers

Pay.UK have published the data below on behalf of CASS participants who have consented to its disclosure. This table shows the net winners and losers for the period for the fourth full quarter of 2019 (so for switches completing between 1 October and 31 December 2019).

Source: Pay.UK

Top Five Winners

For the first time Monzo have secured the number one slot by with a net gain of 20,843 accounts, Nationwide came second, Lloyds third followed by Starling and Nat West in fourth and fifth respectively.

However, when adjusted for banking group entities the top five positions change – Monzo and Nationwide retain first and second place, Starling secure third place, HSBC rise to fourth place and NatWest group are adjusted to fifth place.

Overall, ten current account providers lost more than 1,000 accounts and just seven won more than 1,000 accounts.

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Future Switchers

Research conducted by Pay.UK suggests that 29% of people are currently thinking about switching their current account and 5% have already decided who they will switch their bank account to.

It will be interesting to see how many of the 29% actually switch their bank account and how these switches will affect the winners and losers in the current account market place.

Reasons To Switch

When asked why they chose to switch bank account the reasons cited were:

  • 68% prefer the new current account they opened (only 4% said the new account was worse than their old one).
  • 46% said that the online banking experience was improved.
  • 40% said that their new bank delivered better customer service.
  • (Surprisingly in a low interest rate environment) 27% said the new provider offered a more competitive interest rate.
  • 23% said that the new bank had a more convenient branch location (unless they meant the cloud this couldn’t have been this who chose Monzo and Starling!)

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