Since September 2013, the UK’s Current Account Switch Service (CASS) has facilitated over 10.3 million account switches. The service’s popularity reached a peak in the fourth quarter of 2023, with a record-breaking 433,701 switches conducted in the build-up to Christmas.
In a bid to attract customers, banks competed fiercely, offering lucrative switching deals, such as the £200 incentive provided by Nationwide. November emerged as the busiest month, witnessing 162,637 switches.
Impact of Online and Mobile Banking
Pay.UK, the owner and operator of CASS, highlighted the significance of the pre-Christmas period for current account switches. Despite tempting financial benefits and higher interest rates, the convenience of online and mobile banking remained the primary motivation for consumers in choosing their new account.
Growth in Switching Figures
In the fourth quarter of 2023, the overall number of switches rose by 15% compared to the same period in 2022. The continuous growth indicates the competitive nature of the market and the willingness of customers to explore better offers.
Bank Switching Data
Looking at the third quarter of 2023, NatWest emerged as the most switched-to bank, gaining a net total of 59,158 accounts. HSBC followed with 25,037 net gains, TSB with 15,754, and RBS with 6,382. On the other hand, neobanks like Starling Bank, Monzo, and Chase struggled to compete with the enticing incentives, resulting in a loss of accounts for each of them.