Current Account Switch Service volumes rise in Q3 2022 as economic climate shifts
- Amidst a rapidly changing financial environment, the latest Current Account Switch Service Dashboard reveals switching volumes increased across the quarter, rising every month from July (57,204) to August (74,459) and then reaching a 2022 high in September (90,445)
- End user switching data, which is three months in arrears, showed that HSBC, Lloyds Bank and Starling had the highest net switching gains between April and June 2022
- In Q3 2022, awareness and satisfaction levels for the Current Account Switch Service remained strong, at 77% and 92% respectively.
The Current Account Switch Service today publishes its Q3 2022 Dashboard1 reporting the latest switching figures and trends
Between July and September 2022 the Current Account Switch Service processed 222,108 switches, an increase on the 191,777 it facilitated in the previous quarter between April and June 2022. The growth in switching volumes coincides with a changing economic climate in the UK, which has led to many assessing their options and favouring current accounts that offer a switching incentive or a higher rate of interest.
Monthly switching volumes increased from July (57,204) to August (74,459) and reached a record level for 2022 in September (90,445). Rolling 12-month totals also show an annual increase between Q2 2022 (850,243) and Q3 2022 (859,751). 99.3% of switches during this period were completed in seven days, which is a key component of the Current Account Switch Service Guarantee.
Current Account Switch Service end user data (which is three months in arrears) shows that from April to June 2022, HSBC had the highest net switching gains (18,047), followed by Lloyds Bank (11,173) and Starling Bank (9,880). Nationwide (5,598) and Monzo Bank (4,559) were in fourth and fifth place, respectively. While many of the providers in the top five offered financial switching incentives during this period, two did not, highlighting that for many end-users features such as customer service 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 so far.
Overall, the Current Account Switch Service remains on track to achieve its annual targets and it continued to perform well in Q3 2022, with awareness and satisfaction results for the period reaching 77% and 92%, respectively. The latest data also highlighted that 91% of Current Account Switch Service end-users would recommend the process.
The latest data2 for Q3 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. Most end-users cited online banking (48%) as the main reason for preferring their new account, followed by customer service (41%) and mobile banking/banking app ease (38%). However, the interest rate gained through a current account is now the fourth most important factor for switchers, with one in four (25%) noting this was a reason for them preferring their new account.
“Amidst rising living costs, people are increasingly looking for a current account that works best for them; offering a positive on and offline experience as well as quality customer service. This is continuing to lead many to consider different providers.
“Those looking for a new current account can switch with confidence, safe in the knowledge that switching to an account that suits them better is a quick, free, and easy process through the Current Account Switch Service.”
Notes to editors
1 Full details are available in the latest edition of the Current Account Switch Service Dashboard (no.36), and includes the latest customer movement data for Q2 2022.
2 Online research with over 2,000 respondents conducted by the Current Account Switch Service.
3 Online research carried out by Mortar Research which conducted a survey among 2,159 UK consumers. The research was conducted in Q3 2022.
*Previously 'Customers' have been referred to as 'Participants' and 'End Users' as 'Customers' by the Service. These changes will be reflected in all future press releases.