Current Account Switch Service facilitates 1.4 million switches in past year
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 Q3 2023 and who the switching winners and losers were in Q2 2023.
The latest Current Account Switch Service data reveals a 63% increase in switches on the previous year, with 1,399,571 switches having taken place over the twelve months covering 1 October 2022 to 30 September 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. 2023 has seen monthly switch volumes in six figures for seven of the nine months to date – a feat only achieved three times in the period January 2020 to December 2022.
John Dentry, Product Owner at Pay.UK, owner and operator of the Current Account Switch Service, said:
“The Current Account Switch Service marked its ten year anniversary this quarter, and in that time the Service has upheld an important role in supporting consumers and businesses change their current account to better suit their needs.
“It is particularly noteworthy that three new customers, Citibank, Allica Bank, and Rothschild, have joined the Service this quarter, enabling greater choice for consumers and demonstrating the significance of the Service.”
Since the launch in September 2013 CASS has facilitated 9.8 million switches and successfully redirected 141.4 million payments.
Q3 2023: CASS performance
The CASS insights published by Pay.UK (the operator of the switching service) show us the following monthly switching volumes in Q2 2023 and Q3 2023.
Source: Pay.UK
Between July and September 2023, the Current Account Switch Service saw a 55% increase in the number of switches on the same period last year, with a total of 344,195 switches across 51 participating banks and building societies taking place (compared to 222,108 in Q3 2022).
Pay.UK have also published the following service performance insights….
Satisfaction, awareness and confidence
In Q3 2023 the Current Account Switch Service:
- achieved satisfaction levels of 87%.
- met its awareness target of 75%.
- was well regarded with 87% of Current Account Switch Service end users stating that they would recommend the switching sevrice.
Source: Pay.UK
Source: Pay.UK
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 Q3 2023 cited better online or mobile app banking (45%) and customer service (32%) as the top two reasons for preferring their new account.
- Financial factors also ranked highly, with interest earned (31%) and account fees or charges (21%) coming in as the third and fourth most important factors.
- 99.7% of switches were completed within the SLA of seven working days.
- Just 5,602 small business and charity accounts switches took place during Q3 2023:
Source: Pay.UK
Q2 2023: Participant performance
Pay.UK publish participant CASS data a quarter in arrears so the latest data provides an insight into switches completed in Q2 2023.
Here’s the winners and losers broken down by participant:
Source: Pay.UK
Of the 48 brand participants in this quarter, five brands recorded a net gain of accounts (last quarter it was 9).
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.
Q2 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:
Winners
1: Nat West +99,695
2: HSBC +25,769
3: RBS +16,017
4: Ulster Bank +2,330
5: Triodos Bank +102
Losers
6: Danske -268
7: Bank of Ireland -268
8: AIB Group (UK) -664
9: J.P.Morgan CHASE -880
10: Bank of Scotland -1882
11: LLoyds Bank – 2818
12: Starling Bank Ltd – 2931
13: Co-operative -5,822
14: Virgin Money -6162
15: Monzo Bank Limited -9080
16: TSB -13087
17: Nationwide -20594
18: Barclays -21598
19: Halifax -22014
20: Santander -32560
Q2 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.
Winners
For Q3 2023 the top three by group is:
1: Nat West +115,712
2: HSBC +25,769
3: Ulster Bank +2,330
Losers
At the other end of the table the picture is a follows when shown by group:
17: Barclays -21,598
18: Lloyds -24,882
19: Santander -32,560
Conclusion
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, the CASS service has reestablished itself post pandemic with 1,399,571 switches having taken place over the twelve months covering 1 Oct 2022 to 30 September 2023 – a 63% increase on the previous year.
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 as in Q1 we see “legacy” banks claiming the top three slots. Again it is likely to be due to switching incentives during the second quarter of 2023.
The UK’s CASS service celebrated its 10th anniversary in September continuing to provide a solution for those wishing to switch their bank account with confidence, simplicity and ease.