NatWest emerges as the clear winner in the current account switching game, attracting a whopping 45,651 more switchers than it lost in the first quarter of 2023. Amidst a crisis and the resignation of its chief executive, NatWest’s success can be largely attributed to its enticing £200 switching incentive introduced in February. This offer remains open, giving customers the opportunity to switch to the bank’s Reward or Select account and receive the cash reward after logging into mobile banking and making a minimum deposit of £1,250.
The competition is not far behind, with TSB, First Direct, Halifax, and RBS also offering financial incentives to attract switchers. However, industry experts wonder if NatWest’s costly marketing strategy of paying £200 to gain customers will prove effective in the long run, especially if customers are quickly switching to rival banks offering the next big cash handout.
On the other end of the spectrum, Nationwide Building Society experienced a significant loss of 34,259 customers in the first quarter of 2023. This contrasts the previous quarter, where the building society gained a record-breaking 111,941 net new accounts while offering the £200 incentive. This suggests that customers may have taken advantage of the free cash offer and swiftly moved to banks offering more attractive deals.
Overall, there has been a significant increase in the number of account switches facilitated by the Current Account Switching Service (CASS), with a 76% rise in the second quarter of 2023 compared to the same period last year. Over the course of the year, CASS facilitated 1,277,484 switches, a 50% increase from the previous year.
The growing trend of account switching can be attributed to the increasing number of customers seeking financial relief amidst the financial squeeze. However, it remains to be seen if banks can retain these switchers in the long term.
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