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Current Account Switch Service celebrates 10 million switches since launch

While Q4 2023 was a record month for switching, it seems neobanks are being overshadowed by their high street rivals

Current Account Switch Ad / Pay.UK

Pay.UK

Since September 2013 when it first launched, some 10.3m account switches have now taken place using the UK’s Current Account Switch Service (CASS).

The milestone comes as usage of CASS hit a record high in the fourth quarter of 2023, with 433,701 switches made in the run-up to Christmas as banks competed to offer the most lucrative switching deals, including a £200 incentive from Nationwide.

Pay.UK, the owner and operator of CASS, said November was the peak month during the period, with 162,637 switches taking place.

“Once again, the run-up to the Christmas period proves itself to be an important time for switching current accounts,” John Dentry, product owner at Pay.UK said.

“As interest rates appear to be stabilising, it will be interesting to see how the market develops. Despite higher interest rates, cash incentives and other financial benefits, online and mobile banking still continues to be the most significant reason that consumers prefer their new current account.”

Overall the switching figures for the fourth quarter of 2023 were up 15 per cent compared to the same period in 2022.

Looking at the latest per bank switching data, which is published in arrears and covers the third quarter of 2023, NatWest was the most switched-to bank with a net gain of 59,158 accounts, followed by HSBC (25,037), TSB (15,754) and RBS (6,382).

UK neobanks are meanwhile struggling to compete with the increasingly lucrative incentives on offer, Starling Bank saw a net loss of 1,999 accounts in Q3 2023, while Monzo lost 3,197 accounts and even Chase lost a modest 140 accounts

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