CCPC publishes current account switching research and guidance for consumers
July 20, 2022
The CCPC has today published new research. It shows that the majority (81%) of Ulster Bank and KBC current account customers plan to switch, however less than half (44%) have opened a new account. Among those who had started or completed the switch, moving direct debits and regular payments was the biggest challenge.
In response to this, we have made a step-by-step guide to moving direct debits. We have also created a suite of helpful information on the switching process. Visit our Switching Hub for advice, top tips and essential information.
1 in 5 has not taken any action to switch current accounts:
Ulster Bank customers (47%) were more likely to have opened a new account when compared to KBC customers (27%). 1 in 5 (20%) reported that they had decided on their new provider but had yet to open an account. This was highest amongst KBC customers (35%), compared to 18% of Ulster Bank customers. 1 in 6 (15%) had started to compare provider options but had yet to decide on who to move to. A further 1 in 5 (20%) reported they had not done anything about switching their current account.
Start the process of switching with our current account comparison Money Tool. This easy-to-use online tool compares the costs and benefits of available current accounts.
Majority expect switching process to take 2 months or less:
The majority (65%) of those intending to switch believed it would take two months or less. 1 in 4 (24%) expected it to take between two and six months. A further 6% believed it would take more than 6 months to complete.
If you need to switch current account providers, take-action sooner rather than later. This helps you avoid potential delays or being left without banking services. Delaying the process to the last minute could lead to negative consequences, such as;
- regular payment disruptions
- loan repayment arrears, or
- security risks and a negative personal credit rating
Direct debits are the biggest switching challenge:
Those who had completed or started the switch said moving direct debits (13%) was the biggest challenge. This was followed by
- a lack of suitable alternatives (8%)
- difficulties accessing in-person support (7%)
- too many forms and documentation required (7%)
- challenges in switching multiple financial products to a new provider (7%)
The research also showed that 7% felt the biggest challenge was the time and hassle it took to switch. Ulster Bank customers (15%) and those switching their main account (16%) were most likely to say this. It also showed that (64%) of all respondents weren’t aware of the Central Bank’s Switching Code. This is a process that allows certain banks to help consumers switch.
1 in 4 considering an online-only provider:
Research also showed that over a quarter (29%) of respondents said they would consider an online-only provider. Over half (52%) of KBC customers who took part said they would consider an online-only provider. This compared with 1 in 4 (24%) of participating Ulster Bank customers.
Remember to research and compare your switching options carefully. Ensure you find a new current account provider that best suits your needs. For more information on switching current accounts and personal finances, visit our Switching Hub.
You can also read our full research findings.