« Things worth reading: 28th November 2013 | Main | Things worth reading: 29th November 2013 »

November 28, 2013

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

Joe Wilson

Not sure I reach the same conclusion from these statistics.

It seems to me that the net gainers, Santander and Nationwide, are the ones paying the highest offers on linked savings accounts at a time when savings rates are terrible.

There is no evidence that 'winning' these customers will be profitable in the long term or that they won't be as quick to switch away when offers are removed.

Personally I feel Natwest and Lloyds won't lose too much sleep over losing some in credit and less profitable current account customers at the same time as they are still deleveraging and can borrow cheap money via the FLS.

This seems to be more a short term zero sum price war than a genuine improvement in competition or benefit from the new switching regime.

Fritz Thomas Klein

I am convinced that a bank funding itself consistently, irrespective of short term market conditions, via its own customers is more stable and will do better than banks without such funding. History has proven this over and over again. So the ones not worried about this will be (again) the problem banks longer term.

John Gilbert

Probably the stat that made the most impression was the fact that the main reason for switching was the 22% of people (leading reason)who moved because of a local branch /opening hours.

Perhaps a break down of which brands saw people switch because of this fact would be the most illuminating brand stat, especially given the large sample of respondents. Indeed the branch would appear to play a bigger part of the current account package than many bank-watchers may have expected.

Research by GfK for JGFR (just before faster switching came into effect in September) found 7% of customers of the main financial services providers (aka top 10 banking brands)are likely to switch (2% very likely). One interesting finding is that people seeking new mortgages (18%) were more likely to switch suggesting that good mortgage offers (linked to branch advice?) and boosted by Funding for Lending are a driver of switching behaviour

Over the 10 years + of the JGFR/GfK UK Banking Barometer Lloyds TSB and Barclays dominate as the two leading MFSPs, although the separation of Lloyds Bank and TSB has resulted in Lloyds TSB losing share but still retaining pole position. Santander, RBS and TSB have the most customers likely to switch (albeit on small samples)

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Comments are moderated, and will not appear until the author has approved them.

Search blog


Your email address:


Powered by FeedBlitz

Become a Fan

Twitter FSClub

    follow me on Twitter
    Amazon Digital Bank

    Financial Brand Editor's Choice

    Alex: The Finanser BlogAlex at the Financial Services Club
    Gaping Void: The Finanser BlogGaping Void's Hugh MacLeod worked with the Finanser
    Wordle: The Finanser Blog

    The Financial Brand

    NetBanker

    Payments News - from Glenbrook Partners

    Payments RSS

    Tomorrow's Transactions blog

    Analytics