Current Account Switching Service: The return of the incentive

In Northey Point’s latest report on the Current Account Switching Service we find how many of us transferred our bank account in Q4 2020 and who the switching winners and losers were during the ongoing COVID pandemic in Q3 2020.

The steady state of Current Account Switches was disrupted by the emergence of the COVID pandemic in the first half of 2020. Although the number of switches began to rise during the Autumn, the December switching levels fell to 41,357 (a mix of seasonal and lockdown factors are the probable cause of this dip).

However, whilst this was true of personal current accounts in Q4, December 2020 recorded the highest proportion of small business and charity switchers accounting for 12% of switchers (personal 88%).

Whilst it is likely that Halifax’s number one spot can be attributed to switch incentive offers the top three reasons to switch (online banking, mobile banking and customer service) point to current account providers having a strong digital offering.

The key service factors of the CASS service of the 7 day switch guarantee, consumer awareness, consumer confidence and account redirection have all performed highly during Q4. This is evidenced by the 91% of people who have used the service over the last three years being satisfied with the CASS service.

With 13% of current account holders actively considering switching and a further 15% thinking about switching the service performance and consumer satisfaction point to the CASS service will continue to play its part in stimulating a competitive current account market in the UK – which, after all, was the key driver for the development of the CASS service.

Read our full blog: Current account switches increase in Q4 2020 as incentives return.

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