High street lender Metro Bank has said it has seen a 100% increase in customers switching from other current account providers, thanks chiefly to the new switching service that was introduced in September.
The service, which cost £750m and was launched on September 16, means that customers can, in theory, switch their current accounts in just seven days, with the banks doing the majority of the leg work.
Metro Bank, which was rated highly in the Move Your Money campaign’s “switching scorecard” of more responsible banking options, opened its doors on the high street in 2010.
One month on from the introduction of the new switching service, the bank says that 83% of its new customers have come from competitors HSBC, Santander, Barclays, Lloyds Bank, the Royal Bank of Scotland and NatWest, with the largest number coming from HSBC and Santander.
Craig Donaldson, Metro Bank CEO, said, “The first month of seven-day switching has been extremely positive for Metro Bank. We’ve seen huge numbers of customers using the new service to vote with their feet, and join us for a customer service focused banking experience.”
The ‘big five’ – Barclays, HSBC, Lloyds, RBS and Santander – were said to be among the least honest and poorest performers for customer service in Move Your Money’s switching scorecard, which was launched to help customers seek out better, more ethical and sustainable options.
On Tuesday, the Payments Council, which co-ordinates the switching service, released figures that showed 89,000 customers had switched their current account provider in the first month of the service’s operation.
A report my consumer group Mintel suggested that those switching could equate to as much as 385,000 per month in the past year, meaning that many customers are still switching without using the service.