NatWest was the big winner in the bank switching stakes as it welcomed 83,000 customers in the first three months of the year, enticed by its £200 switch offer.
The banking giant welcomed 83,131 customers in Q1 2024, the largest number recorded in the period, according to figures from Pay.UK.
But once losses had been factored in (22,634), it was left with a net gain of 60,497 customer accounts.
Again, this was by far the largest figure across banking brands, at a time when it was offering a £200 switch incentive.
RBS came in second place with a net gain of 13,210 as 19,860 joined the bank, but 6,650 decided to leave the lender.
In third place came TSB, which saw 25,888 customers flock to it, but 14,248 voted with their feet, leaving it with a net gain of 11,640. In January, the bank also launched a bank switch bribe offering new customers £125.
In total, in the three months to March, there were 320,000 bank switches made by customers.
Current account switching
While the customer switch data is three months in arrears due to “commercial sensitivity”, Pay.UK, the owner and operator of the Current Account Switch Service (CASS), releases total but anonymised figures on the number of recent switches.
Here, there were 313,293 switches in Q2 2024 across the 53 participating banks and building societies, with April being the busiest month across the quarter (135,892 switches). Small business and charity accounts also saw high switching levels, with 6,214 switches over the quarter, up 7% on the same quarter last year (5,814).
And in the past 12 months, 1.4 million switches have been made, up 10% from the 1.2 million recorded in the previous year.
Pay.UK said “the continued upward switching trend demonstrates that finding the right bank or building society remains a priority for end users”.
It added that online or mobile banking (43%) remained the top reason people preferred their new account, as has consistently been the case for over 12 months. Following this, interest earned (37%) was the second-most important reason, with customer service (29%) and location of branches (24%) close behind.
Since the CASS launched in September 2013, the total number who have used it totals 10.9 million. Meanwhile, 152.7 million payments have been successfully redirected.
John Dentry, product owner at Pay.UK, said: “The continued upward trend in current account switching underscores the importance that consumers and businesses place on finding the right banking partner. This quarter’s switching data reflects not only a robust and competitive market but also the trust and confidence that end users have in the Current Account Switch Service.
“As the UK economy shows signs of recovery, it’s encouraging to see that the service remains a critical tool for those looking to switch their current account. Whether for individuals or small businesses, the ability to switch accounts through a process that is quick, free and easy ensures that everyone can find a current account that best serves their needs, whatever they may be.”
