Current account sales up at The Co-operative Bank
The latest data from The Co-operative Bank Current Accounts has revealed a 38% increase in current account sales in 2009. Furthermore when looking in more detail the numbers show a 22% increase in customers switching their current accounts to The Co-operative Bank from other major providers, with a 31% increase in switching activity from the big four banks.
New research findings highlight many of the reasons which drive people to look for a new current account provider, with over a third citing customer service (29%), a quarter looking for online banking facilities (23%) and a local branch (19%) and more than one in ten looking for a more ethical provider (10%), and a transparent charging structure (14%).
The figures demonstrate that since the beginning of the financial crisis despite the usual trends of inertia in the current account market, people have started to look at their banking providers more closely, with general discontent and distrust leading to many customers voting with their feet.
When looking back over the last twelve months there have been a number of events that have triggered the switching activity, with peaks in the numbers switching accounts linked to events in the wider economic climate including public distrust in financial institutions, unease with remuneration policies and confusion over overdraft charging structures.
Despite the increase in numbers switching, the research does show that some inaction does still exist when it comes to changing bank accounts, with the average person much more likely to switch energy providers, move house, or switch mobile phone companies than switch their current account. However the research also now highlights that moving current accounts is now more common than other life events such as changing career, moving countries, or getting a divorce.
John Hughes, Business Leader, Retail Products for The Co-operative Financial Services comments, "The findings clearly show that customers are now increasingly likely to switch their bank account, if they are unhappy with the service, facilities or ethos of their provider."
"Historically many people chose their banking provider when they were younger and stayed with that provider throughout their life. However now more than ever consumers should review their banking products as their personal circumstances change to ensure that their account suits their financial needs and service requirements. In the past moving a current account often seemed daunting, but actually, most banks now do all the work, including transferring all direct debits and existing balances, which makes the process much easier for customers."