Less than a fifth of people have switched bank account in past year – survey
Cash incentives, better customer service and more competitive interest rates were among the top reasons why people said they had last switched.
Less than a fifth (17%) of adults have switched a bank account in the past year, according to a survey.
Nearly half (45%) of 18 to 24-year-olds surveyed said they had moved banks in the past year compared with just 4% of those aged 65 and older, the research for audit and advisory firm KPMG found.
Cash incentives, better customer service and more competitive interest rates were among the top reasons why people said they had last switched their bank.
Despite the rise of challenger brands and innovations with new banking app features, nearly half (49%) of people aged 65 and over said nothing would make them consider moving their main source of income to a non-high street bank account.
Peter Rothwell, a partner and head of banking at KPMG UK, said rises in life expectancy should not be overlooked by firms, adding: “The growing proportion of older consumers now represents a big opportunity, but also a challenge, for the banks.
“To entice this older demographic when it comes to switching, lenders must focus on raising awareness of the ease and the perks of the switching process, particularly when it comes to money-saving features that could help address cost-of-living challenges.”
Nearly a quarter (24%) of people surveyed do not expect to switch bank accounts at any point in the future.
The Current Account Switch Service (Cass) was introduced over a decade ago to take the hassle out of switching current accounts, with payments being automatically moved over from the old bank account to the new one and a guarantee that switchers will not be left out of pocket if something goes wrong with the process.
OnePoll surveyed 2,000 people across the UK in October for KPMG.