A new report has revealed that Lloyds, Natwest and online bank Starling have won more customers than any others this year so far, with customers switching bank and building society accounts in search of better service.
It seems many of the big-name High Street banks are being shunned in favour of lesser-known alternatives as Clydesdale, Monzo and Triodos were also being favoured by consumers looking to switch their current account.
Fewer switches took place with a total of 137,976 marking a fall of 51,297 in the last quarter of 2020. Lockdown restrictions and a reduction in the number of switching incentives are thought to have contributed to the drop.
The Current Account Switch Service (CASS) report showed TSB were the biggest losers with a net loss of more than 20,000 switches. The bank stopped paying credit interest on its Classic Plus current account last year when it closed the service to new customers and now offers a spend and save account as an alternative.
CASS also asked account holders why they chose to switch, with the most common reasons being a move for better online banking facilities and improved customer service.
71% of consumers who made the switch using the Current Account Switch Service said they prefer their new current account, with just 3% reporting that they feel the new account is worse.
David Piper, head of service lines at Pay.UK, owner and operator of Cass, commented: “Through a fast-changing market the Current Account Switch Service remained focused on its priority objectives, to ensure that the service is available to those who wish to move their current account in a simple, reliable and stress-free manner.
“To that end, I’m proud our team has been able to maintain its exceptional completion rate into 2021 and awareness and satisfaction levels were above target.”
The banks with the highest switching gains in the last three months are:
- Lloyds Bank: 29,556
- Starling Bank: 15,960
- NatWest: 9,003
- Clydesdale Bank: 8,584
- Monzo: 6,765
- Triodos Bank: 1,043
- RBS (includes Adam & Company, Coutts and Isle of Man brand switches): 1,013
- Bank Of Scotland: 627
- Ulster Bank: 317
Lenders with the biggest customer losses in the past three months are:
- TSB: minus 20,236
- Santander: minus 18,270
- Halifax: minus 11,231
- Nationwide: minus 6,454
- Barclays: minus 6,398
- HSBC (includes First Direct and Marks & Spencer Bank brand switches): minus 3,944
- Tesco Bank: minus 2,487
- Co-operative Bank, (includes Smile brand switches): minus 1,729
- Bank Of Ireland: minus 374
- AIB Group UK (includes First Trust Bank and Allied Irish Bank GB switches): minus 310
- Danske: minus 242