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UK Insights

No bank switching stampede

Consumer Shoppers 26.11.2013 / 12:51

Switching Index November 2013

No dramatic increase in overall levels of bank current accounts switching under the new Switch regime

The new switching regime has seen a modest pick-up in current account moves, but there has been no dramatic change. Just over a third of those who have switched in the past year (35%) moved in the last three months, against 27% in the three months before the Switch launch in September. Click on the infographic above to see more.

The November 2013 wave of the TNS Current Account Switching Index, conducted among 13,320 current account holders, also shows that customers are continuing to drift away from the traditional High Street banking names, in spite of marketing campaigns and special offers to defend their customer base under the new switching regime.

All the traditional banking names have lost more customers through switching than they gained, with Santander, Nationwide and Halifax making net gains of 12%, 6% and 4% respectively. More than half of all customers gained by these banks came from Barclays, HSBC, Lloyds & TSB and NatWest. However, gains were not exclusively from the traditional banks and just under 20% of gains by Nationwide and Halifax came from Santander.

This latest wave of the index was completed before the latest negative publicity surrounding the Cooperative Bank, which showed a 1% net gain.

There is some evidence that financial incentives are gaining more traction in customer recruitment but a bank's customer service is still the main driver for those looking elsewhere, and reputation is a strong driver of choice. For those choosing a new bank, financial incentives are the key motivators for those joining Santander, Nationwide and Halifax, and reputation is a key factor in the choice of Co-operative Bank, First Direct and Nationwide.

We have consistently found that reputation is driven by great service and, while customers want best value and increasingly expect to be rewarded, these are weaker drivers of loyalty and satisfaction. In this latest wave, Nationwide seems to be achieving the best balance between service and value as they both feature in their reasons for choosing Nationwide - it will be interesting to see if that can continue.

Source : Kantar TNS

Editor's Notes

Journalists, to interview Maureen Duffy, please contact us.

Data quoted is among banking customers: (1) cumulative data runs from 8th July to 12th November 2013 (38,175 interviews); and (2) data for this wave only is for the period 15th October to 12th November 2013 (13,320 interviews).

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