In the rolling year to Q2 2022, current account switching volumes reached 850243, an increase of 203674 compared to the same period the year prior.

In this latest dashboard, we find out how many of us transferred our bank account in Q2 2022 and who the switching winners and losers were in Q1 2022.

The number of switches during 2022

As previously reported the previously 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 of 2020, the December switching level had fallen to 41,357 (a mix of seasonal and lockdown factors being the probable cause).

Source: Pay.UK

While current account switches dipped again in January 2021 (31,854) and February 2021 (42,398) as Lockdown 3.0 took hold, there was a significant increase in March (63,724) as the roadmap for the COVID-19 recovery became clearer. This recovery continued throughout the remainder of 2021 as restrictions continued to ease – only falling back in December as variant restrictions increased together with the usual seasonal impact.

Source: Pay.UK

Activity in Q2 2022 is ahead of 2021, although the gap is narrowing which is expected given we were emerging from Lockdown conditions last year. In the second three months of 2022, 191,777 switches took place through the service, which is 12,336 more than in the same quarter in 2021:

Source: Pay.UK

The Current Account Switch Service has now completed 8.2 million switches since the launch in September 2013 and successfully redirected 123.7 million payments.

David Piper, Head of Service Lines at Pay.UK, owner and operator of the Current Account Switch Service, said:

“As life in the UK begins to return to its pre-pandemic form, we have seen an uplift in the numbers choosing to switch to a new current account. This trend could continue in 2022 with many looking to take advantage of rising interest rates and the cashback incentives that some providers are currently offering. Of course, rising living costs provide another reason for people to assess whether their existing current account is providing the right service for their needs, or whether moving to another current account might be a prudent move.

“Those considering whether it’s time for a new current account should remember that the Current Account Switch Service is free to use and provides a valuable layer of protection to those wishing to switch in a fast and stress-free manner.”

Q2 2022: CASS performance

The CASS insights published by Pay.UK (the operator of the switching service) show us that during Q2 2022:

Source: Pay.UK
  • In the rolling year to Q2 2022, current account switching volumes reached 850,243, an increase of 203,674 compared to the same period the year prior.
  • Nearly two in three (63%) current account switchers in the last 12 months used the Current Account Switch Service, up from 55% in the two years prior; showing a proportional increase in the numbers of people using the Service to switch their current account.
  • Since the service launched in 2013, the system has successfully redirected more than 123.7 million payments seamlessly and transparently from an ‘old’ (and closed) bank account to the ‘new’ bank account. One of the early fears for the CASS service was that payments directed to the ‘old’ bank account would result in ‘lost’ payments, the development of a ‘redirection table’ has proved to be an integral part of ensuring the success of the accounts switching service.
Source: Pay.UK
Source: Pay.UK
  • 99.7% of switches have been completed within the seven working day switch timescale.
  • In Q2 2022 89% of CASS switchers would recommend the switching process.
  • Of those who have switched account, 73% say their new current account is better than their old one and only 2% say it is worse.
  • The top three reasons people rate their new account as better than their old account continue to be service related:
    • Online banking (47%) (Q1 2021 53%)
    • Mobile Banking (41%)(Q1 2021 42%)
    • Customer Service (38%) (Q1 2021 40%)
  • In Q2 2022, around one in six (16%) of current account holders were actively considering switching – a similar proportion to the two quarters before. Another 13% were thinking about switching but had not started looking yet.
  • The Current Account Switch Service’s Confidence Index achieved a score of 80% in Q2 2022. The Confidence Index is the average proportion of CASS users agreeing with each of the following four statements: ‘it would be easy for me to switch’, ‘it would be quick for me to switch’, ‘I think it is a secure and reliable process’, and ‘any problems would be dealt with effectively’..

Q1 2022: Participant performance

Pay.UK publish participant CASS data a quarter in arrears so the latest data provides an insight to switches completed in Q1 2022:

Source: Pay.UK
  • Of the 47 brand participants 8 brands recorded a net gain of accounts (note: a number of brands are included in a catch all ‘low value participant’ category which recorded 482 gains and 1408 losses so it is possible that an individual brand or two made a small net gain).

Q1 CASS winners and losers by brand

Pay.UK publish the winners and losers information in alphabetical order but sorting based on net gains/losses provides an interesting picture of winners and losers on an individual brand level:

  1. Natwest: +19464
  2. Nationwide: +12503
  3. Starling Bank: +11888
  4. HSBC: +5176
  5. Monzo Bank Limited: +3221
  6. Bank of Scotland: +732
  7. RBS: +634
  8. Triodos Bank: +403
  9. Ulster Bank: -79
  10. Danske: -91
  11. Bank of Ireland: -388
  12. AIB Group (UK) p.l.c.: -1580
  13. Virgin Money: -2310
  14. Santander: -3052
  15. Lloyds Bank: -3099
  16. Co-operative: -3895
  17. Halifax: -11939
  18. Barclays: -12851
  19. TSB: -13120

Q1 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 has previously provided a different picture. However for Q1 the top three by group are again unchanged – i.e.

  1. Natwest: +20098
  2. Nationwide: +12503
  3. Starling Bank Limited: +11888

At the other end of the table, however, the picture is altered when shown by group:

18. TSB: -13120
19. Lloyds: -14306

Conclusion

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). While current account switches dipped in January 2021 (31,854) and February 2021 (42,398), there was a significant increase in March 2021 (63,724) as the roadmap for the COVID-19 recovery became clearer and this continued throughout 2021 and into the first quarter of 2022.

Activity in Q2 2022 is ahead of 2021, although the gap is narrowing which is expected given we were emerging from Lockdown conditions during this time last year. In the second three months of 2022, 191,777 switches took place through the service, which is 12,336 more than in the same quarter in 2021:

The top three reasons to switch (online banking, mobile banking and customer service) continue to point to current account providers having a strong digital offering as is evidenced in the league table above.

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 Q2. This is evidenced by the 90% of people who have used the service over the last three years being satisfied with the CASS service.

With 16% of current account holders actively considering switching, the service performance and consumer satisfaction point to the likelihood that the CASS service will continue to play its part in stimulating a competitive current account market in the UK.