Santander remains ahead of Halifax as number one choice for current account switchers
4 high street banking giants lose more than a quarter of a million accounts to rivals between them in 2014
Rewards appear to be the main driver for switchers
Andrew Hagger looks at the latest data on current account switching. (Bacs latest figures are Q4 2014 but I have amalgamated the stats to show figures for the whole of 2014)
The figures for the high street giants paint a grim picture with Barclays (98400), NatWest(71040), HSBC (44953) and Lloyds Bank (45119) showing a combined net loss of more than quarter of a million (259,512) customers during 2014. (note Lloyds Bank figures included TSB for Q1 and Q2 2014)
By contrast Santander saw a net gain of 186,183 in the same 12 month period; this is no doubt partly due to rock bottom savings rates and the attractive interest rate of 3% paid on current account credit balances between £3,000 and £20,000.
Halifax ended up with an extra 150,401 switchers in 2014 with the £100 introductory switching payment and £5 monthly reward (if always in credit) proving to be a powerful lure.
New research this week from Aimia the marketing and loyalty analysts revealed that 33% of people pointed to loyalty rewards as the biggest influencers when choosing a current account and this marries up with the latest Bacs switching statistics where Halifax (£5 monthly reward) and Santander (cashback on utilities and up to 3% credit interest) are both beating the competition hands down.
Nationwide Building Society and Tesco Bank the only other providers reporting steady growth – up 37,305 and 4,484 switchers respectively in 2014 (note Tesco Bank figs are only for last 6 months of 2014).
TSB will be disappointed to see a net loss of 6,847 customers (last 6 months of 2014).
Please see attached spreadsheet showing a breakdown of switching gains, losses and net position for the whole of 2014.
Current Account Switching Q1-Q4 2014 July 2015