New research from YouGov finds that nearly six in ten (58%) current account holders are not motivated to switch banks because it would be too much hassle.
The research comes from YouGov’s CASH (Current Account Switching and Holding) tracker, which tracks current account holders sentiment and monitors factors that may lead to switching.
From September 16th, reforms in the banking sector mean that a new seven-day switching service will become available that will give current account holders a range of benefits to make changing banks easier.
The YouGov CASH tracker finds that consumers’ main motivations for switching are more, or better, benefits offered from another bank (42%), and incentives to switch offered by other banks (34%). One in three (35%) would be more likely to switch if they could take their current account number to the new bank. Of those who have switched already, 60% found the process easy and 50% said it took little time.
However, only 15% of consumers are aware of changes to the switching legislation, and only 7% have seen the switching logo.
Simon Mottram, director of financial and professional services at YouGov, said: “Consumers clearly see switching their current account as something onerous. It will be interesting to see how this perception changes after Monday, when banks will be required to complete a switch in seven days. We will likely see a more competitive marketplace, with more banks trying to differentiate themselves and make it worthwhile for consumers to switch. The introduction of TSB into the marketplace this week provides another option, but without clear and compelling reasons to switch a lot of consumers are still going to ask themselves, ‘Why would I?’.”
On November 4th, YouGov will release a market intelligence report, ‘Current Accounts: Barriers to Switching’, which will examine trends in consumer thinking and behaviour on switching their current accounts.