London - 6 June - Nearly one fifth of those moving their current accounts from the troubled Co-operative Bank are switching to the Nationwide building society, according to new figures from TNS.
The latest Current Account Switching Index (CASI) from TNS shows that Nationwide, Santander and Halifax have been the main gainers in the nine months since the Switch initiative was launched to help customers move their accounts.
For the first three months following the launch of Switch, in September, the Co-operative was a net gainer. For the past three months the Co-operative has been a net loser, and in May 8% of all switchers were moving out of the Co-op, with 3% choosing to open accounts with the bank.
By contrast, Nationwide has recorded net gains of between 3% and 8% of switchers in every month of the Switch regime.
Over the nine months, 19% of those leaving the Co-operative have chosen Nationwide.
Maureen Duffy, CEO of TNS UK said: "We carried out a large survey of bank customers in late 2012, which found that both the Co-operative bank and Nationwide were in a position to increase their market share – by 2.5 and 1.2 percentage points respectively.
"Both institutions had reputational strength for customers: Nationwide as the only large-scale mutual in the current accounts market, and the Co-operative because of its ethical principles.
"Nationwide has achieved a share rise in line with our forecast, while the Co-operative – with its well-publicised difficulties – has been unable to make headway."
The latest CASI shows that poor customer service was cited by 22% of switchers as their reason for leaving their banks, while convenience (branch availability/opening hours/online offering) was cited by 22% as the reason for choosing their new bank.
There was a strong rise from 12% to 19% in those saying that interest rates on credit balances was their main reason for choosing their new bank.
Santander was again the main gainer, chosen by 24% of switchers, while losing 11%. The bank has recorded double-figure net gains for seven consecutive months.
Notes to editors:
TNS interviewed a nationally representative sample of 8372 current account holders between 25 April and 16 May, of whom 240 were switchers. Interviews were conducted face-to-face in-home.
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