Current Account Switching Remains Low

Further evidence today that very few people are switching current account. Charlie Weston, in the Indo, has reported on the new CBI switching figures here and here.

About 0.2 percent of people switched in the last 6 months. This stat covers people who used the CBI switching process rather than doing a self switch so it is not fully accurate. Also, the stat does not cover those who opened a brand new account without closing an old account. However, it paints a picture of very few people willing to switch bank account.

It is a shame that more people are not going to the minor hassle of switching bank account.

CiaranT said:

About 0.2 percent of people switched in the last 6 months. This stat covers people who used the CBI switching process rather than doing a self switch so it is not fully accurate.

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I did a self-switch so won't appear in the stats. I wonder what the ratio of CBI:self switching is for people on AAM who have switched recently.

I'm one of these :

the stat does not cover those who opened a brand new account without closing an old account

Click to expand...

If you're trying to estimate a CBI:self switching ratio for AAM posters, it could be this group are more likely to do things for themselves.

I have to say that I found that article very dispiriting. From reading this forum I would have thought this would be a much higher number, but it is not surprising that AAM posters and readers seem to have a higher level of engagement in this area and therefore would expect to see more focus on switching banks in this forum than in general.

I suppose you have to strip out retired + students as they get free banking and have no need to switch.

I think the problem is simply that people, in general, are not using the 'automatic' switching service. Perhaps, people do not trust it. I certainly have heard of problems with it.

There are plenty of people looking for value in their banking. PTSB have opened over 60,000 current accounts since they started their current product offering. It is difficult to reconcile this stat with the CBI stats. I guess that the vast majority of the PTSB account openings must be self switches and account openings for those who want their first Irish current account.

Also, as you said, under most circumstances, those aged under 21 and aged over 60, already have free banking and hence have no need to switch. Also, those already with PTSB or willing to jump through the hoops at Ulster Bank to get free banking have little reason to switch.

Hello,

I must admit I'm far from shocked by the findings in that article.

During the "boom" there was little movement between banks, despite far greater competition - banks like PostBank, National Irish Bank (Danske), Halifax and even ACC offered us greater choice than we have now but we didn't take it.

We have far fewer options now, the only options are AIB, BoI, Ulster Bank, PTSB or KBC and I fear KBC will struggle just like those who have since left us never to return ... why, simply because we're a nation of complainers, not a nation for taking action. We far rather bitch 'n' moan about our Banks, than move to a new one. All you have to look at is the loyalty shown to UB, despite a number of inexcusable technical issues in the past 12-18 months and how it impacted on their customers, or the number of people still paying fees for their day to day basic banking to find support for my comments.

Here's an idea - I should be able to move from Bank A to Bank B using just Bank B website - switching online. Bank A should have the authority to transfer over any documents i.e. copy of passport,bill etc. Whatever I used to open the current account with Bank A in the first place.

If the Government or Banks really insist that I re-confirm my I.d. again,address then regardless of what bank or building society I select An Post Post offices should allow me to drop in with my necessary documents to re-confirm.

You should not have to go to Bank A or Bank B - would people even move then? - who knows but the easier the better. I used the switching process to move from BOI to PTSB and it was fine.

The Government needs to act and remove stamp duty on debit and credit cards also.