There has been no dramatic change in overall levels of switching of bank current accounts under the new Switch regime, but just over a third of those who have switched in the past year (35%) moved in the last three months, against 27% in the three months before the Switch launch in September.
London - 26th November 2013 - The latest wave of the TNS Current Account Switching Index, conducted among 13,320 current account holders, also shows that customers are continuing to drift away from the traditional High Street banking names, in spite of marketing campaigns and special offers to defend their customer base under the new switching regime.
All the traditional banking names have lost more customers through switching than they gained, with Santander, Nationwide and Halifax making net gains of 12%, 6% and 4% respectively. More than half of all customers gained by these banks came from Barclays, HSBC, Lloyds & TSB and NatWest. However, gains were not exclusively from the traditional banks and just under 20% of gains by Nationwide and Halifax came from Santander.
This latest wave of the index was completed before the latest negative publicity surrounding the Cooperative Bank, which showed a 1% net gain.
Awareness of Switch has levelled out at 50% of the population which is in line with earlier TNS research, which showed that around half of current account holders have no interest in switching. Older groups are the most aware of Switch – 62% of over 55s compared to 39% of those between 25 and 34. But the 25-34-year-olds have been 60% more active in actually switching accounts.
There is some evidence that financial incentives are gaining more traction in customer recruitment but a bank’s customer service is still the main driver for those looking elsewhere, and reputation is a strong driver of choice. For those choosing a new bank, financial incentives are the key motivators for those joining Santander, Nationwide and Halifax, and reputation is a key factor in the choice of Co-operative Bank, First Direct and Nationwide.
Maureen Duffy, CEO of TNS UK said: "We have consistently found that reputation is driven by great service and, while customers want best value and increasingly expect to be rewarded, these are weaker drivers of loyalty and satisfaction. In this latest wave, Nationwide seems to be achieving the best balance between service and value as they both feature in their reasons for choosing Nationwide – it will be interesting to see if that can continue.”
Notes to editors:
TNS Current Account Switching Index is a UK study conducted by TNS UK.
Data quoted is among banking customers: (1) cumulative data runs from 8th July to 12th November 2013 (38,175 interviews); and (2) data for this wave only is for the period 15th October to 12th November 2013 (13,320 interviews). For further information please contact firstname.lastname@example.org.
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