Current Account Switch Service sees highest number of switches in Q4 2022 since launch
- As the UK’s financial climate continued to shift, the latest Current Account Switch Service Dashboard reveals that between October and December 2022 376,107 switches took place; the highest quarterly figure on record.
- End user switching data, which is three months in arrears, showed that Santander, HSBC, Starling and Monzo had the highest net switching gains between July and September 2022.
- November saw the highest total number of monthly switches ever (157,376), with small business and charity accounts also reaching a new high (2,131).
- Awareness of and satisfaction with the service remained consistently high in Q4 2022, at 76% and 93% respectively.
The Current Account Switch Service today publishes its Q4 2022 Dashboard (see below), reporting the latest switching figures and trends.
Between October and December 2022, the Current Account Switch Service processed 376,107 switches, an increase on the 222,108 it facilitated in the previous quarter between July and September 2022.
The figures from Q4 represent the highest total volume of switches that the Current Account Switch Service has facilitated since its inception, almost a decade ago, in September 2013. The high switching totals may signal that consumers and businesses across the UK are reassessing their current account options during the challenging economic climate, looking to accounts that offer services that suit them better, or provide switching incentives. The high totals at the end of 2022 align with a number of strong incentives and offers from current account providers at the time, signalling a healthy and competitive switching environment for consumers and business alike.
Monthly switching volumes peaked in November at 157,376, the highest ever recorded and when compared to the same period in 2021 a volume increase of 73%. October and December had 118,427 and 100,304 switches respectively. Small business and small charity accounts also saw a strong quarter, with 2,131 accounts being switched in November alone, the highest monthly level since May.
Current Account Switch Service end user data (which is three months in arrears) shows that from July to September 2022, Santander had the highest net switching gains (29,105), followed by HSBC (13,119), and Starling Bank (9,070). Monzo Bank (6,038) and Nationwide (3,248) were in fourth and fifth place, respectively.
Digital only banks continue to hold positions within the ‘top five’, despite the lack of incentive programmes, suggesting that for many end users mobile banking and mobile app ease-of-use were important. At least two digital banks have appeared in the ‘top five’ performing current account providers in each quarter of 2022
Across 2022 the Current Account Switch Service achieved its awareness and satisfaction targets, with results for the final quarter reaching 76% and 93%, respectively. The latest data also highlighted that 91% of Current Account Switch Service end users would recommend the process.
The latest data1 for Q4 2022 shows that seven in ten (73%) switchers preferred their new current account to their previous one, with service-related, non-financial benefits continuing to be the main reasons end users preferred their new account.
End users cited online banking (46%) as the main reason for preferring their new account, followed by customer service (42%) and mobile banking/banking app ease (40%). However, the interest rate gained through a current account continues to be the fourth most important factor, with one in four (25%) noting this was a reason for them preferring their new account.
David Piper, Head of Payments Operations at Pay.UK, owner and operator of the Current Account Switch Service, said:
1 Online research with over 2,000 respondents conducted by the Current Account Switch Service.