Majority of the customers in the UK are switching their current accounts based on the particular bank’s reputation and customer service, according to a recent study.
Despite offering various financial incentives and special offers, the big retail banks find it difficult to woo customers, who are switching their current account to their rivals, according to research from TNS.
TNS UK CEO Maureen Duffy said, "We have consistently found that reputation is driven by great service and, while customers want best value and increasingly expected to be rewarded, these are weaker drivers of loyalty and satisfaction."
According to the report, Santander, Nationwide and Halifax registered net gains of 12%, 6% and 4% respectively, due to the new switching service.
Nationwide gained 54,000 new customers following the switch and termed the service a ‘big success’, while MetroBank had seen a 100% increase in customers switching from other banks.
On the other hand, Lloyds and TSB, Barclays, Natwest, HSBC and the Royal Bank of Scotland (RBS) have lost more customers than they have gained through the service.
The study further pointed out that financial scams have negatively affected the reputation of the UK’s five biggest banks, which in turn reduced their customer base.
It was found that the younger generation, aged between 25 and 34, are more active in switching accounts, while those aged over 55 are more likely to have heard about the service.
The UK Payment Council launched the current account switching service during the second week of September, which enables consumers, small charities, small businesses and small trusts, to switching current accounts from one bank to another, conveniently.