1.2 million switches in past 12 months
In the latest Current Account Switch Service (CASS) dashboard, published by Pay.UK, we find out how many of us transferred our bank account in Q2 2023 and who the switching winners and losers were in Q4 2022.
Spoiler alert: The latest Current Account Switch Service data reveals a 50% increase in switches on the previous year, with 1,277,484 switches having taken place over the twelve months covering 1 July 2022 to 30 June 2023.
2023 current account switching numbers
The historic performance of the switching service was severely disrupted by the COVID pandemic, however a clear recovery has taken place. As CASS approaches its tenth anniversary in September, the last five months has seen monthly switch volumes in six figures – a feat only achieved three times in the period January 2020 to December 2022.
The Service continues to play a vital role in allowing people and businesses the flexibility to change accounts and find a banking partner that better suits their needs. This quarter’s switching figures demonstrate a healthy and competitive switching environment for consumers and businesses during a time of economic uncertainty with high inflationary pressures. People can rest assured that if they decide to move to a new banking provider through the Current Account Switch Service, the process will be quick, free and easy.
John Dentry, Product Owner at Pay.UK.
Since launch in September 2013 CASS has facilitated 9.5 million switches and successfully redirected 137.8 million payments.
Q2 2023: CASS performance
The CASS insights published by Pay.UK (the operator of the switching service) show us the following monthly switching volumes for the first half of 2023:
Between April and June 2023, the Current Account Switch Service saw a 76% increase in the number of switches on the same period last year, with a total of 338,194 switches across 48 participating banks and building societies taking place (compared to 191,777 in Q2 2022).
Pay.UK have also published the following service performance insights….
Satisfaction, awareness and confidence
In Q2 2023 the Current Account Switch Service:
- surpassed its 90% satisfaction target, hitting 91%.
- met its awareness target of 75%.
- was well regarded with 86% of Current Account Switch Service end users stating that they would recommend the switching sevrice.
Reasons for switching
- 7 in 10 (71%) switchers preferred their new current account to their previous one:
- service-related, non-financial benefits continued to be the main reasons end users preferred their new account.
- but 2% said that in some the new account was worse.
- Those who switched current account through the Service over Q2 2023 cited better online or mobile app banking (41%) and customer service (29%) as the top two reasons for preferring their new account.
- Financial factors also ranked highly, with interest earned (29%) and account fees or charges (25%) coming in as the third and fourth most important factors.
- 99.5% of switches were completed within the SLA of seven working days.
- Just 5,814 small business and charity accounts switches took place during Q2 2023:
Q1 2023: Participant performance
Pay.UK publish participant CASS data a quarter in arrears so the latest data provides an insight into switches completed in Q1 2023.
Here’s the winners and losers broken down by participant:
Of the 48 brand participants nine brands recorded a net gain of accounts (last quarter it was just 4).
Note: A number of brands are included in a “catch all” low volume participant category which recorded a net gain of -970 (531 wins and 1,501 losses) so it is possible that an individual brand or two made a small net gain.
Q1 2023: CASS winners and losers by brand
Pay.UK publish the winners and losers information in alphabetical order but sorting based on net gains and losses provided an interesting picture:
1: Nat West +45,651
2: HSBC +28,486
3: Lloyds +10,959
4: RBS +4,165
5: Santander +4,092
6: TSB +3,269
7: Starling Bank +299
8: Triodos Bank +93
9: Ulster Bank +77
10: Bank of Ireland -332
11: Danske -366
12: AIB Group (UK) -866
13: Co-operative -1,359
14: Bank of Scotland -2,458
15: Virgin Money -6,240
16: Monzo -7,635
17: Barclays -18,655
18: Halifax -21,322
19: Nationwide -34,259
Q1 2023: CASS winners and losers by banking group
Pay.UK publish the winners and losers information in alphabetical order by brand but sorting based on net gains / losses by banking group often provides a different picture.
For Q1 2023 the top three by group is:
1: Nat West +49,893
2: HSBC +28,486
3: Santander +4,092
At the other end of the table the picture is unaltered when shown by group:
17: Lloyds Banking Group -12,821
18: Barclays -18,655
19: Nationwide -34,259
Not surprisingly the COVID pandemic had a significant impact on the volumes of UK current accounts that were switched, after all with a ‘stay at home’ directive the opportunity to switch accounts was severely restricted. However it is clear that the CASS service has reestablished itself post pandemic with ith 1,277,484 switches having taken place over the twelve months covering 1 July 2022 to 30 June 2023 – a 50% increase on the previous year.
Since January 2020 there have been just eight months were the monthly volume of switches was in six figures and five of these have been on the first half of 2023.
These figures are, no doubt, supported by a combination of high satisfaction, high awareness and the service being recommended by those who have switched accounts.
The reasons for switching a bank account can be very personal and often are complex but Pay.UK’s research shows that people are mostly driven to switch their account based on service related issues and non financial reasons. Online banking, customer services, interest rates and account fees feature are significant factors in choosing a new bank.
Previous dashboards have often placed neo banks at the top of the “switching table” but this time around we see “legacy” banks claiming the top three slots with two neo banks at 7th and 16th position this time around. Although this might be a surprise to some it is likely to be due to switching incentives during the first quarter of 2023.
The UK’s CASS service celebrates its 10th anniversary in September, it is in fine operational fettle, has a great presence and reputation and is clearly providing a solution for those that want to switch their bank account with confidence, simplicity and ease.
Having been the first custodian of Current Account Switching Service and been accountable for its operations for the first few years of its operation I am proud of its achievements and its continued role in supporting a vibrant and competitive current account switching market in the UK.