The last months of 2022 saw the highest number of bank account switches so far

More people switched current account providers in the last three months of last year than ever before, with 376,000 switching to new banks.

In November alone, more than 157,000 UK customers switched their current account to a new bank using the government’s Current Account Switching Service (Cass), now in its 10th year.

Figures from Pay.UK, which runs the Cass service, revealed a significant jump compared to the same period in 2021, While about 250,000 accounts have changed – A record number at the time.

Cass was launched in 2013, enabling account switching in seven days – much faster than the 30 days it used to take. At the time, the UK government was keen to stimulate competition in the retail banking sector following the financial crisis that began in 2008. Vocalink developed the service’s IT platform, with CGI overseeing the two-year project, which cost £750m.

Since its launch, the fintech industry has exploded, and today there are many options available to consumers in financial services offered by digital challenger banks and other digital-led payment providers.

David Piper, head of payments operations at Pay.UK, said: “It’s encouraging to see the highest level of switches this quarter, demonstrating the continued relevance of the service for consumers and businesses across the UK.”

“Those considering a new current account, for whatever reason, can be assured that the Current Account Switch service has facilitated nearly nine million switches through a quick, free and easy process,” Piper added.

High street banks HSBC and Santander gained the most new customers through switching services. But digital challenger banks Sterling and Monzo were next in line. These digital-first current account providers are part of the fintech revolution, offering options – often app-based – that use the latest technology to enhance and personalize services.

Santander netted over 29,000 new customers through Cass, HSBC Gained around 13,000, while Sterling Bank and Monzo Bank added close to 9,000 and 6,000 respectively.

According to Cass, the main reason for switching was online banking, with 46% of respondents citing it as a reason for their decision. Customer service was the next most influential factor in persuading people to switch banks (42%). And 40% said they were attracted to their new current account provider by easy-to-use mobile banking.

Challenger digital banks and other fintech firms Can win new customers with tools to help people manage their finances During the current cost-of-living crisis, financial management tools, personalized financial products and various credit options are available.

The current financial struggles of people around the world may encourage app adoption, Just like the Covid-19 pandemic didBut for different reasons.

When Covid-19 hit the world in 2020, the need for people to avoid contact with others led to the adoption of digital banking. With high streets closed for long periods, the take-up of financial technology has exploded as people of all ages turn to apps to manage their money.

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