Pay.UK reveals big jump in number of current account switches in the UK over last 12 months
Pay.UK‘s Current Account Switch Service has seen a 50% increase in switches compared to last year, with 1,277,484 account switches having taken place in the UK over the period between 1 July 2022 to 30 June 2023, according to its latest results for Q2 2023.
Pay.UK posts quarterly results for Current Account Switch Service
Initially launched in 2013, the free-to use service allows users to switch current accounts between banks and building societies, and is available to individual account holders, small businesses, charities and trusts.
Its latest results indicate that the service is becoming increasingly popular. According to the figures, the service experienced a 76% year-on-year jump in the number of switches between April and June of this year alone, equating to a total of 338,194 switches.
In comparison, the service incurred only 191,777 switches during the same period last year.
During Q1 2023, as the data is three months in arrears, UK bank NatWest incurred the highest amount of switching gains at 45,651, followed by HSBC with 28,486, Lloyds Bank with 10,959 and RBS with 4,165.
More recently, the data for Q2 2023 indicates that 71% of switchers preferred their new chosen current account provider.
Service-related, non-financial benefits appear to remain the primary reasons for triggering a switch. Of the users who instigated a switch during this period, 41% cited a better experience with online or mobile app banking and 29% cited improved customer service as their main reasons for doing so.
Users were also swayed by financial incentives for switching, with 29% benefitting from increased interest earned and a further 25% stating that the switch lowered their account fees and charges.
A decade since its launch, the service has now hosted a total of 9.5 million account switches, and has successfully redirected 137.8 million payments.
“The service continues to play a vital role in allowing people and businesses the flexibility to change accounts and find a banking partner that better suits their needs,” comments John Dentry, product owner at Pay.UK.
Reflecting on the service’s latest quarterly results, Dentry says they demonstrate “a healthy and competitive switching environment for consumers and businesses during a time of economic uncertainty with high inflationary pressures”.
The top 4 each offered £150-200 to switch, which is not included in the “financial incentives” section (interest/fees). I took HSBC’s incentive, but haven’t *really* switched due to their old fashioned app. I had expected vrp integration (given their publicity), but there’s no info.
I wonder who Nigel Farrage took £200 from? Ho honly joking 🙄