Nationwide Building Society emerged as the top beneficiary of current account switches in the final quarter of 2023, according to data released by the Current Account Switch Service (Cass). From October 1 to December 31, Nationwide secured a net gain of 163,363 full account switches, significantly outperforming its competitors. Barclays and Lloyds Bank also recorded gains, with 12,823 and 5,800 new accounts, respectively. Conversely, NatWest, RBS, and Halifax experienced substantial losses. NatWest lost 43,182 accounts, RBS lost 11,621, and Halifax lost 41,144. Santander also reported a decline of 34,581 accounts. Andrew Hagger, a leading personal finance expert, attributed Nationwide’s success to its £200 switching incentive offered in the autumn of 2023. He noted that consumers are increasingly willing to switch banks for financial incentives, especially amidst the rising cost of living. In recent months, there has been a decline in cash-to-switch offers, with First Direct ending its £175 switching incentive on March 26, 2024. Alastair Douglas, the chief executive of TotallyMoney, emphasized the importance of simple and transparent cash bonuses to attract customers. Despite the reduction in cash incentives, the Current Account Switch Service reported facilitating 320,364 switches in the first quarter of 2024, taking its total to over 10.6 million since its inception in 2013. Notably, switching among small businesses and charities increased by 10 percent compared to the same period last year, with 7,075 successful switches in the quarter. John Dentry, product owner at Pay. UK, the company that owns and operates Cass, highlighted the effectiveness of cash incentives in attracting customers and the growing preference for online or mobile banking as a key reason for switching accounts. The overall number of switches in the first quarter of 2024 did not match the high of the final quarter of 2023, which saw 433,701 switches. However, the end of the financial year may have contributed to a spike in switching from businesses seeking to optimize their finances.
Nationwide Tops Current Account Switch Service in Q4 2023
