19% increase in people switching bank account

One year after the Current Account Switch Service was launched, the Payments Council has reported a 19% increase in customers switching current accounts – around 1.1 million people. However, some have argued the figure is too low.

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The service was introduced about a year ago to make it easier and quicker for customers to switch their current account, trying to respond to the increasing number of people dissatisfied with their bank.

The Payments Council, which has run a survey to test the effects, called the measure a success saying that 70% of the public is aware of it and 88% of people found it very easy to use.

It says that 1.1 million people have switched account, up from 925,985 in the previous year, before the service was launched.

Commenting on the figures, Gerard Lemos, executive chairman of the Payments Council, said,
“The Current Account Switch Service is a fantastic example of the power of collaboration and shows what can be achieved when highly competitive businesses put aside their differences to work together for the greater good.

“The service was designed to make life easier for customers by removing barriers to switching, with the aim of boosting competition in the banking sector. It’s clear from reviewing its very first year that it’s made great ground – empowering customers with the ability to switch their bank account easily and quickly if they choose to do so.”

However, the Financial Conduct Authority (FCA) has said that the number is relatively low, as just 2.2% of current account holders switched.

Photo: William Grootonk via Flickr

Further reading:

Banking system remains risky and uncompetitive, research finds

UK bankers are paid too much, says EU regulator

Currency account switching service has ‘teething problems’

Tesco boosts competition in current account market

The Guide to Sustainable Banking 2013