Barclays and Lloyds face customer exodus

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The Independent Online

Barclays and Lloyds TSB stand to lose a higher percentage than their rivals of the more than one million customers that are most likely to change banks in the coming months, a survey showed.

Of the estimated 3.8 million UK current account customers that have considered switching banks in the last year, about 1.1 million are dissatisfied with their provider of financial services, according to a report by the research company Managing the Service Business.

Barclays, Lloyds, HSBC and Royal Bank of Scotland Group have the largest numbers of current account holders, and are most vulnerable. But HSBC and RBS are more likely to make up losses by picking up new customers, the survey found.

About 23 per cent of the respondents to the survey who were mulling a move were customers of Lloyds TSB, which has 22 per cent of the current account market, the largest share. But only 9 per cent of the group considering switching favoured moving to Lloyds.

In the case of Barclays, 12 per cent of respondents were customers of Britain's second largest bank, which has 16 per cent of current accounts. Only 4 per cent of those who contemplated a switch were thinking of changing to Barclays.

Halifax has boosted interest rates on current accounts to up to 4 per cent, making it one of the most attractive possibilities to the survey of 1,100 people. Some 15 per cent said they might move there.