Business

1,500 more account holders abandon their banks

Close to 1,500 current account holders ditched Northern Ireland's four main banks in last three months of 2021.
Close to 1,500 current account holders ditched Northern Ireland's four main banks in last three months of 2021. Close to 1,500 current account holders ditched Northern Ireland's four main banks in last three months of 2021.

NEARLY 1,500 more current account switches away from Northern Ireland's four main banks took place during the last three months of 2021.

AIB Group UK, which includes the First Trust Bank and Allied Irish Bank brands, lost 769 customers to rivals, while 471 Bank of Ireland customers moved elsewhere, according to figures released by the Current Account Switch Service (Cass).

Danske Bank and Ulster Bank fared slightly better, with 199 and 30 accounts respectively being ditched (the figures include individuals, small businesses and small charities switching).

In the UK as a whole, some 248,902 accounts were switched between October and December - that's 36,302 more than in the previous quarter and 59,629 more than in the same period a year earlier.

Cass said 7.8 million moves have been processed since the switching service launched in 2013.

The scheme automatically moves payments over from someone's old account to their new one to help the process go smoothly, and a guarantee promises that customers will not be left out of pocket if something goes wrong with the switch.

David Piper, head of service lines at Pay.UK, owner and operator of Cass, said: "Performance and usage of the Current Account Switch Service remained strong in the final months of 2021, with thousands continuing to benefit even in the face of the growing challenges presented by the emergence of the Covid-19 Omicron variant.

"We also saw digital-first participants continuing to attract new customers as many seek current account providers with high-quality online tools, such as mobile apps."

In a sign of competition ramping up, some banks have launched new "cash to switch" offers this week, including a £150 offer from NatWest and £140 from Santander.

The Cass report also found that Nationwide Building Society made the highest net gains from customers using the switching service in the third quarter of 2021, adding 33,828 new accounts.

It was followed by digital challengers Starling Bank (up 15,371) and Monzo (up 6,498), with Santander and Virgin Money placed next.

Cass said the service aided customers from Tesco Bank (down 19,657) and M&S Bank, who used it to switch away as those providers started withdrawing from the current account market.

The figures show HSBC made a net lost of 19,760 switchers in the third quarter of 2021 - a total which includes M&S Bank brand switches.

Several other banking giants, including Halifax, Barclays and NatWest, also made net switching losses.

Cass's consumer research found the top reasons for customers switching generally included for better online banking facilities, a sophisticated mobile banking app and improved customer service.

The location of branches and preferable account fees were also viewed as important.

Of those who completed a switch in the fourth quarter of last year using Cass, 69 per cent said they prefer their new account and just 3 per cent said it is worse.