Bank switch scheme success as three million move

Figures show that there have been around 3.2 million successful switches.

These include 73,899 small business accounts since the current accounts switch service’s launch in September 2013. It ramped-up competition within the banking sector with many dangling financial incentives in front of potential customers to encourage them to make the move.

As it hits its third birthday, the UK’s Current Account Switching Service (Cass) has revealed that it has facilitated the switching of three and a quarter million people’s accounts in its first 36 months of operation.

Introduced in September 2013, the £750 million Cass scheme was designed to make it easier and quicker for Brits to move their bank provider, boosting competition.

Celebrating its third birthday, Bacs, which runs the service, says that in its first three years, it has seen 3,240,640 successful switches - including 73,899 small business accounts - and reports a seven day switching success rate of 99.7 per cent.

However, whether this is enough to placate regulators is questionable.

Last March, disappointed in take-up, awareness and confidence in the system, City watchdog, Financial Conduct Authority, stepped in calling for marketing campaigns.

Following the threat of an expensive move to full account portability, banks and building societies provided several million pounds for marketing Cass.

A new set of ads will begin this weekend and a new website dedicated to the service is also being launched.

With increased competition the government’s main driver for making account switching easier, Bacs says that during the last three years there have also been 150 “enhancements” to UK personal current accounts, while the number of banking providers offering the service has risen from 33 to 43.

Anne Pieckielon, director, product and strategy at Bacs, said: “Since the Current Account Switch Service was launched, we’ve worked hard to keep pace with changing needs, collaborating across the industry and with government and regulators - such as the Competition and Markets Authority - to provide a world class switching service for individual customers, and smaller businesses and charities.”