Current account switching levels rise in Q2 as consumers explore options
- The latest Q2 2021 Current Account Switch Service Dashboard shows that 182,745 switches took place between April and June 2021, 44,769 more than in the previous quarter
- Over 7.3 million switches have now been completed since launch, and awareness of and satisfaction with the service remained above targets at 77 per cent and 93 per cent respectively
- Starling Bank was the participant with the highest net gains in Q1 2021, followed by Virgin Money, which includes Clydesdale and Yorkshire Bank brand switches as a result of the merger, and Monzo.
Today, the Current Account Switch Service publishes its Q2 2021 Dashboard1 reporting the latest switching figures and trends. As the roadmap for the COVID-19 recovery became clearer, consumer switching increased significantly. Between April and June 2021 182,745 switches took place, an increase of 44,769 on the previous quarter. Over the course of the past year, from June 2020 to June 2021, a total of 646,569 switches were processed by the service.
Since the Current Account Switch Service launched in 2013, it has facilitated over 7.3 million account switches and successfully redirected more than 110.1 million payments. Throughout the pandemic, the service has maintained a high switch completion rate, which continued in Q2 2021 with 99.8 per cent of switches completing successfully within seven working days. Both awareness of (77 per cent) and satisfaction with (93 per cent) the service remained consistent and above targets between April and June 2021.
Across the Current Account Switch Service’s 50 participants, Starling Bank (17,769) had the largest net switching gain in Q1 2021 (participant data is collected three months in arrears). This was followed by Virgin Money (17,495), which now includes Clydesdale and Yorkshire Bank brand switches as a result of the 2020 merger, Monzo (7,744), Nationwide (1,474) and Bank of Scotland (1,448) for net switching gains.
The latest data2 from the Current Account Switch Service shows that the most commonly cited reasons for favouring a new current account remain ‘non-financial’, as has been the case throughout the pandemic. In the second quarter of 2021, consumers favoured better online banking facilities (47 per cent), stronger customer service (39 per cent), ease of mobile or app-based banking systems (39 per cent) and location of branches (25 per cent) in their new current account. Of those who completed a switch using the Current Account Switch Service 70 per cent say they prefer their new current account, with only 2 per cent stating that their new account was worse. Overall, 93 per cent of Current Account Switch Service switchers were satisfied with the switching process and 88 per cent would recommend using the Current Account Switch Service.
The Current Account Switch Service’s Confidence Index also remained high achieving 81 per cent in Q2 2021 – the second highest score ever recorded. The Confidence Index is the average proportion of Current Account Switch Service users agreeing with each of the following four statements: ‘it would be easy for me to switch’, ‘it would be quick for me to switch’, ‘I think it is a secure and reliable process’ and ‘any problems would be dealt with effectively’.
Notes to editors
1 Full details are available in the latest edition of the Current Account Switch Service Dashboard (no.31), and includes the latest participant movement data for Q1 2021.
2 Online research with over 2,000 respondents.