Switching battle should heat up with one month to go until new rules kick in
Commenting on today’s announcement that the Payments Council has confirmed a new current account switching service will start on 16 September, Michael Ossei, personal finance expert at Uswitch.com**,** says: “With only one month to go until new rules come into force making it easier for consumers to switch current accounts, we expect to see competition heat up. This week First Direct increased its switching incentive from £100 to £125, while Halifax is still offering new customers £100.
“While it’s good to see banks offering consumers better value for money, our research reveals one in three (31%) say they would not be motivated to switch current accounts for a cash incentive. Instead, consumers say financial stability (74%) is the most important factor when it comes to picking a brand to look after their money. They want to know that their money is in safe hands, and this is proving to be more of a siren call than the charms of good service and value for money.
“With the switching process set to become quicker and simpler, we hope to see more banks up their game and offer greater choice and service in order to win over those consumers now prepared to make the move.”
Key Uswitch.com research findings:
Just one in ten consumers (11%) have switched current account over the last 12 months but 42% are more likely to do so when the new Current Account Switch Service comes in – while 46% will wait and see
One in five consumers (18%) are not satisfied with their current account provider, blaming excess charges (45%), poor interest rates (36%) and in-branch queues (21%)– high street banks perform the worst
Despite poor satisfaction ratings, consumers would choose a traditional high street bank (49%) over a building society (23%), internet (22%) or retail brand (3%)
Consumers would choose a bank that is financially secure (74%) and has a good reputation (71%), over one that is ethical (27%) or a household name (26%)
FOR MORE INFORMATION
Charlotte Nunes
Phone: 020 7148 4664
Email: charlotte.nunes@uswitch.com
Twitter: @uswitchPR
Notes to editors
Research carried out online with the Uswitch.com Consumer Opinion Panel in June 2013 amongst a sample of 1,355 GB adults
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