Current Account Switch Service | News
Bacs press released today, more than two million UK current account customers have successfully moved between banking providers using the Current Account Switch Service since its launch on 16 September 2013.
The service, which offers consumers, small businesses, trusts and small charities a simple, reliable and stress-free way of switching current accounts, was created to increase competition, support the entry of new banks in the current account market place and give consumers greater choice when switching from one bank or building society current account to another. It is now offered by 40 high street banks and building societies – up from 33 at launch – giving almost total coverage of the current account market.
And research among those using the service shows that nine out of 10 are satisfied with their switching experience, with almost 100% of switches completing on the day of the customer’s choice.
Since January 2015, almost 700,000 successful switches have taken place, with the service recording more than half a million switches in the first two quarters of the year.
Once a current account has been opened with a new bank or building society, the Current Account Switch Service will transfer all the activity relating to the old account to the new one.
That includes moving incoming and outgoing payments, and transferring the account balance, as well as closing the old account. Any communications during this time need only be with the new bank.
The service is backed by the Current Account Switch Guarantee, which promises to reimburse account holders if they incur any fees or charges as a result of the switch over. Operationally, the process has proved successful with first time acceptance rates – where a switch goes through on first application – running at around 97%.
Going forward, the Current Account Switch Service will be supported by a £multi-million awareness raising campaign commencing on 18th September 2015 and which will include TV advertising, print and online media together with PR and social media campaigns.
Economic Secretary to the Treasury, Harriett Baldwin, said: “Increasing competition in banking so that customers get a better deal is at the heart of the government’s long term plan.
“That’s why we challenged industry to make it easier for customers to switch accounts, and welcomed the launch of the seven-day Current Account Switch Service in September 2013.
“I’m delighted to meet today with customers of the service to hear first-hand how it is helping people to switch accounts and get a better deal.
“I also welcome the new public awareness campaign that will be launched later this week. This will help make sure that the service can continue to help customers hold their banks to account by allowing them to vote with their feet.