Hundreds of thousands of consumers have taken advantage of the new seven-day switch system to move to a new bank.
The Payments Council has revealed that over 300,000 consumers switched their current account in the final three months of 2013 – an increase of 17% on the same three-month period in 2012.
Over 100,000 applied to switch in November as awareness of the new system grew and banks offered new perks to attract disenchanted consumers.
The run-up to Christmas saw 83,729 apply to join a new bank – an increase of over 50% on the same month in 2012.
Research by TNS Global last year found that a combination of poor customer service and rewards had persuaded customers to switch.
33 banks and building societies are signed up to the new £750 million switch service, which is designed to help current account holders switch banks within seven days.
The system includes a redirection service that automatically forwards any payment instructions to or from the old account to the new account for 13 months.
It also comes with a Switch Guarantee to ensure that customers are reimbursed of any charges if the transfer goes wrong.
(Find out more about the new switching system with our guide.)
"An Encouraging Start"
The Payments Council says that 59% of the general public are now aware of the switching service – a number it hopes will rise with a new round of advertising.
Its chief executive, Adrian Kamellard, said the numbers showed “an encouraging start”.
“With the launch of new service we have set out to eradicate any concern customers may have had in the past about switching their current account, and although our work isn’t yet done, we have got off to a great start,” he said.
“Even though the Current Account Switch Service only launched a few months ago most people are already aware of it and are confident in it.”
How Can Customers Ensure A Smooth Transfer?
Banks and building societies have reported that mismatching information has been the main cause of delays to the transfer process.
If customers apply for a new account with a recently changed name or address that is not listed with their old bank, it will be more problematic for banks to authorise the switch.
Banks are recommending that customers provide a recent bank statement to the new current account provider to ensure that the details match up.
Customers can also speed up the transfer by providing the details of their existing debit card to their new bank or building society, which will allow the necessary checks to be done more efficiently.
{loadmodule php,News - Author Box}
{loadmodule php,TwitterButton}