London - 1 August - New research from TNS UK reveals that when opening a current account with a new provider the majority of switchers now close their old one.
The TNS Current Account Switching Index has found that 71% of switchers are closing their previous current account – the highest level since the index was launched last September – while 29% are keeping their previous account open.
The great majority of those switching out of Santander (79%) and Lloyds (76%) close their old accounts. This falls to 63% and 64% for those switching from Nationwide and Barclays respectively.
Maureen Duffy, CEO of TNS said: “The figures indicate that most customers are lost to the banks they leave. But some banks may be more successful in keeping some residual loyalty, even after customers have taken the big step of moving their current account.”
The latest index also shows a surge in those giving rewards as a reason for switching to a new bank – 22% of switchers cited this as a reason to switch.
“Rewards which are typically an ongoing financial benefit are now a much bigger motivator to switching than special offers which are more likely to be a one-off benefit on account opening,” said Maureen Duffy. “This may be a sign that bank customers are becoming more savvy about reasons for switching.”
Good online and mobile banking are now motivators to switch for 1 in 10 customers. Barclays, which has invested heavily in digital banking, is the only one of the traditional High Street banks not to be showing net losses among the switcher population.
Bad customer service remains the single largest motivator for switching away from a bank, cited by 22% of account switchers.
Santander remained the main gainer from switching, accounting for 29% of all switchers into a new bank and 9% of all switchers out.
Notes to editors
TNS interviewed a nationally representative sample of 10,124 current account holders between 18 June and 18 July, of whom 322 were switchers. Interviews were conducted face-to-face at home.
Information is available as a full one-page infographic here.
TNS UK advises clients on specific growth strategies around new market entry, innovation, brand switching and stakeholder management, based on long-established expertise and market-leading solutions. With a presence in over 80 countries, TNS has more conversations with the world's consumers than anyone else and understands individual human behaviours and attitudes across every cultural, economic and political region of the world. TNS is part of Kantar, one of the world's largest insight, information and consultancy groups.
TNS UK was awarded the Market Research Society's (MRS) Agency of the Year 2013.
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