Current account switching falls 65% in second quarter

The second quarter of 2020 saw a 65% fall from Q1 in the volume of switches for current accounts in the UK, according to new data published by the Current Account Switch Service.

The figures revealed that 98,192 switches took place in Q2 2020 – 182,328 fewer than in the first quarter – with the lower number heavily affected by the impact of the COVID-19 pandemic and social distancing measures.

Since the Current Account Switch Service launched in 2013, over 6.7 million accounts have been switched and more than 98.1 million payments successfully redirected by the service. The Current Account Switch Service also has a seven-day switching success rate of 99.5%.
The latest data, the Service’s Q2 2020 Dashboard, also showed that of consumers who switched using the service over the past three years, 83% would recommend doing so, while another 69% indicated they prefer their new current account.

Of the Current Account Switch Service’s 49 participants, HSBC had the largest net switching gain in Q1 2020, and was followed by Nationwide, Monzo, NatWest and Starling.

“The past few months have seen highly significant changes for consumers and businesses,” commented Pay.UK COO, owner and operator of the Current Account Switch Service, Matthew Hunt.

“Switching numbers overall have been far lower this quarter, but the Current Account Switch Service has continued to provide a dependable, much-needed service to almost 100,000 people who have switched.
“We realise that the impact of COVID-19 on individuals and businesses is high, in particular for those classed as financially vulnerable. The pandemic clearly impacts people way beyond payments, but we are nevertheless doing our part to try and help, and ensuring that the Current Account Switch Service is always available to those who wish to manage their finances more flexibly by switching their current account in a stress-free way.”

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