Add thelocalreport.in As A Trusted Source
More than one million current account switches have been made in the past year as consumers gravitate towards better banking apps and better interest rates, new data shows.
The busiest quarter of activity was seen in recent months, with approximately 265,100 activities between July and September.
More than 111,000 incidents took place in July alone, according to Current Account Switch Service (CAS) data.
This service allows people to automatically switch their current account by transferring payments to the new provider.
Some people move their money out of CAS and hence the figures given do not include those switches.
Nationwide Building Society It had the highest number of customers switching to current accounts with over 54,000 customers during the third quarter.
After this it was done co-operative bankWith about 9,200, monzo and HSBC, both gained around Rs 8,200.
On the other hand, customers were also avoiding banks. santanderWhich lost about 23,000 accounts during the quarter.
barclays CAS data shows that the switches resulted in losses of approximately 18,300 and Halifax losses of approximately 14,750.
According to a survey conducted by the service, more than two-thirds of those who switched accounts in the third quarter said they preferred their new account.
The main reason 44% of consumers prioritized their new accounts was online or mobile app banking.
It comes amid a drive by many high street lenders to improve and modernize their online banking, as they face stiff competition from digital banks over customer service.
Get free fractional shares worth up to £100.
Capital at risk.
terms and Conditions apply.
Advertisement
Get free fractional shares worth up to £100.
Capital at risk.
terms and Conditions apply.
Advertisement
Some 35% cited customer service as the reason for prioritizing their new accounts, while a third pointed to the interest earned.
While interest rates are coming down this year, some big banks are offering rewards and incentives for people to open a current account with them.
For example, Barclays recently launched an offer which means some people can get up to £900 if they switch both their current account and their Isa savings.
John Daintree, owner and operator of Pay.UK Product Owner – CAS, said: “We are extremely proud to have facilitated over one million switches per year since our launch.
“Especially in a time where personal finances are tighter than ever, maintaining a healthy and active banking market is vital.”