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Current account holders favour familiarity

Current account holders favour familiarity

Category: Banking

Updated: 16/05/2013
First Published: 16/05/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

A study by first direct has found a quarter of current account customers in the UK chose their existing account based on the provider being a well-known high street name.

A further 21% said they had decided to bank with the same provider as their parents, with just 6% claiming their decision was based upon the account offering competitive features and incentives for new customers.

Reflecting a sense of complacency in the current account market, the study also revealed almost half (44%) of people have never switched accounts, choosing instead to remain with their existing provider, despite only 15% stating that they were happy with their current account.

Actions that would prompt customers to switch accounts included receiving poor customer service (54%), closure of local branches (31%) and being offered a better interest rate (34%).

The majority of respondents said they would switch accounts if their provider introduced steep charges or fees, with 60% citing this as a reason for switching.

New rules are due to be introduced in September this year to reduce the current switching process to a maximum of seven working days. The new rules will also see customers refunded for any charges incurred as a result of switching accounts.

What next?

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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