One in five customers to switch bank accounts

Almost one in five current account customers are considering switching bank account, suggesting there could be strong demand for a new switching service.

The study, by market research firm Consumer Intelligence, showed that although two thirds of current account customers have been with their bank for five years or more, 18pc said they will investigate alternative providers in the near future.

David Black of Consumer Intelligence said: “It is clear that current account customers are reluctant to switch at the moment, with 64pc sticking with their provider for five years or more." He said a signficant number of these customers would have been with their bank for more than 20 years. "The old saying about people being more likely to divorce than leave their bank has some truth to it," he added.

However a new switching service, which will be launched this September, by the Payments Council could turn this old adage on its head. Customers will be able to move current accounts simply by contacting their new provider. All incoming payments, including salary mandates, direct debits and standing orders, will be moved, under guarantee, within seven working days, at no charge.

Mark Bowerman, of the Payments Council said: “Part of the rationale of our new switching service is to provide a catalyst for a more open market in current accounts, which should be good news for everybody.”

When asked what would prompt them to switch 22pc of customers said high overdraft fees and charges, or poor interest rates; a further 18pc cited poor complaint handling, while 14pc would move if they were refused an overdraft or loan.