Switching Tracker

Amidst a rapidly changing financial environment, the latest Current Account Switch Service Dashboard reveals switching volumes increased across the quarter, rising every month from July (57,204) to August (74,459) and then reaching a 2022 high in September (90,445)

In this latest dashboard, we find out how many of us transferred our bank account in Q3 2022 and who the switching winners and losers were in Q2 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

Between July and September 2022 the Current Account Switch Service processed 222,108 switches, an increase on the 191,777 it facilitated in the previous quarter between April and June 2022. The growth in switching volumes coincides with a changing economic climate in the UK, which has led to many assessing their options and favouring current accounts that offer a switching incentive or a higher rate of interest.

Monthly switching volumes increased from July (57,204) to August (74,459) and reached a record level for 2022 in September (90,445). Rolling 12-month totals also show an annual increase between Q2 2022 (850,243) and Q3 2022 (859,751).

In the third quarter of 2022 itself,  222,108 switches took place through the service, which is 26,794 more than in the same quarter in 2021.

Source: Pay.UK

The Current Account Switch Service has now completed 8.4 million switches since launch and successfully redirected 126.9 million payments.

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

“Amidst rising living costs, people are increasingly looking for a current account that works best for them; offering a positive on and offline experience as well as quality customer service. This is continuing to lead many to consider different providers. 

Those looking for a new current account can switch with confidence, safe in the knowledge that switching to an account that suits them better is a quick, free, and easy process through the Current Account Switch Service.

Q3 2022: CASS performance

The CASS insights published by Pay.UK (the operator of the switching service) show us that during Q3 2022:

Source: Pay.UK
  • In the rolling year to Q3 2022, current account switching volumes reached 859,751 an increase of 137,157 compared to the same period the year prior.
  • Since the service launched in 2013, the system has successfully redirected more than 126.9 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
  • 99.3% of switches have been completed within the seven working day switch timescale.
  • In Q3 2022 91% 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 (48%) (Q2 2022 47%)
    • Customer Service (41%) (Q2 2022 38%)
    • Mobile Banking (38%)(Q2 2022 41%)
  • The Current Account Switch Service’s Confidence Index achieved a score of 81% in Q3 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’..

Q2 2022: Participant performance

Pay.UK publish participant CASS data a quarter in arrears so the latest data provides an insight to switches completed in Q2 2022:

Source: Pay.UK
  • Of the 47 brand participants 9 brands recorded a net gain of accounts (note: a number of brands are included in a catch all ‘low value participant’ category which recorded 613 gains and 1235 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. HSBC: +18047
  2. Lloyds Bank: +11173
  3. Starling Bank Ltd: +9880
  4. Nationwide: +5598
  5. Monzo Bank Limited: +4559
  6. Natwest: +3785
  7. RBS: +2644
  8. Triodos Bank: +331
  9. Virgin Money: +119
  10. Ulster Bank: -43
  11. Danske: -89
  12. Bank of Scotland: -197
  13. Bank of Ireland: -381
  14. AIB Group (UK) p.l.c.: -1047
  15. Halifax: -1569
  16. Co-operative: -3878
  17. TSB: -13039
  18. Barclays: -14421
  19. Santander: -20220

Q2 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. For Q2 the top three by group are as follows:

  1. HSBC: +18047
  2. Starling Bank Limited: +9880
  3. Lloyds Bank: +9407

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

18. Barclays: -14421
19. Santander: -20220

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 Q3 2022 is ahead of 2021 and in the third quarter of 2022, 222,108 switches took place through the service, which is 26,794 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 although service has edged ahead of mobile banking in the last quarter.

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 Q3. This is evidenced by the 92% of people who have used the service over the last five years being satisfied with the CASS service.

With the increase in switching seen in the current economic climate, 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.

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