Millions moving banks

11 September 2014

bank_sign More than a million people have switched their bank accounts since a national switching service began a year ago.

Thanks to The Payments Council, a trade body which came up with the 'switch guarantee' as a thing to encourage competition, said that the number of switches was up 19% on the year before.

The highly lucrative current account market is dominated by four banks - HSBC, RBS, Barclays and Lloyds - and they provide three quarters of the UK's bank accounts.

The Payments Council have not issued a breakdown, but outside of the big four, Santander have been one of the biggest beneficiaries, with Nationwide.

A lot of switchers have come from the troubled Co-operative Group, who've been basically handing out their customers to their competition.

While no sign of them making much of an impact, the future could be shaken up by TSB, Tesco, Virgin Money and M&S Bank.

David Mann, who is the head of money at comparison service uSwitch, said “We no longer see our bank as our lifetime companion.”

TOPICS:   Banking

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