Nationwide, Barclays and Lloyds 'winners' in current account switch battle

Nationwide Building Society, Barclays, and Lloyds Bank emerged as the top beneficiaries in the final quarter of 2023 because of gains made through the Current Account Switch Service (Cass), according to industry statistics.

The data published by Cass indicate that from October 1 to December 31, Nationwide saw a net increase of 163,363 full account switches.

Barclays managed to secure 12,823 new accounts, while Lloyd's score of additional accounts stood at 5,800.

On the flip side, net switching losses were registered by NatWest at 43,182, RBS with 11,621, Halifax lost 41,144 and Santander had a decline of 34,581 accounts.

These figures, however, do not include any current account switches completed outside of the Cass service which guarantees a seamless transition for the customer where all payments are automatically transferred to the new bank account without losses.

Andrew Hagger, leading personal finance expert and founder of Moneycomms.co.uk pointed out: "Nationwide blew the competition away" during the last three months of 2023.

He speculated that the last autumn's £200 switching incentive offered by Nationwide might have been the key attraction for customers.

Adding to his thoughts, Mr Hagger said, "Consumers are happy to jump ship for the next freebie particularly as people are still feeling the squeeze from higher bills."

Recent research published by financial information website Moneyfactscompare.co.uk reported a dwindling trend in cash-to-switch offers.

First Direct's enticing £175 switching offer, which kicked off on March 26, has come to an abrupt end this Monday. This follows a trend of other banks withdrawing their lucrative cash incentives.

Alastair Douglas, the chief executive of TotallyMoney, commented: "If, and when cash bonuses return to market, let's just hope they're simple and easy to understand. Recently, we've seen some banks ask customers to jump through multiple hoops to secure the headline offer, including minimum transaction numbers, app logins, and even setting up a separate savings account."

"But whatever does happen, it's probably worth checking to see if you can secure improved rates, cheaper overdrafts and a better service elsewhere."

The Current Account Switch Service (Cass) reported facilitating 320,364 switches in the first quarter of this year, taking its total to a whopping 10.6 million since its inception in 2013.

Switching among small businesses and charities saw a 10 percent increase compared to the same period last year, with 7,075 successful switches in the quarter.

However, the overall number of switches in the first quarter of this year didn't quite match the high of the final quarter of 2023, which saw 433,701 switches.

John Dentry, product owner at Pay. UK the company that owns and operates Cass, said: "Cash incentives continue to be a highly effective way for banks to attract customers, but as we repeatedly see through our data, online or mobile app banking remains the top reason why people prefer their new account."

"The end of the financial year may have contributed to a spike in switching from businesses, as many spring clean their finances and set themselves up for a successful year ahead."

The following are the net switching gains or losses experienced by banks in the fourth quarter of 2023 according to figures published by Cass. Excluded are switches made outside the service and data was voluntarily provided by the banks:.

AIB Group (includes Allied Irish Bank brand switches), lost -807.

Bank Of Ireland, lost -563.

Bank of Scotland, representative drop of -3,024.

Barclays emerged with a gain of 12,823.

Co-operative Bank (includes Smile brand switches), saw a drop of -4,238.

Danske, declined by -236.

Halifax reported a significant loss of -41,144.

HSBC (includes First Direct brand switches), recorded loss -3,263.

JP Morgan Chase marked a decline of -3,055.

Lloyds Bank garnered an increase of 5,800.

Monzo, recorded a shift of -5,336.

Nationwide achieved the most substantial rise with 163,363.

NatWest, experienced heavy losses of -43,182.

RBS (includes Coutts and Isle of Man brand switches), declined by -11,621.

Santander reported a significant reduction of -34,581.

Starling Bank lost -1,712.

Triodos Bank indicated a slight decrease of -25.

TSB observed a decline of -10,917.

Ulster Bank faced a loss of -2,587.

Virgin Money saw its current account switchers reduce by -8,592.