Best and worst banks based on switches from Santander to Monzo - see full list

26 January 2023 , 00:01

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Santander, HSBC and Starling Bank attracted more customers compared to rival banks in the last three months (Image: Getty Images/iStockphoto)

Santander, HSBC and Starling Bank attracted more customers compared to rival banks in the last three months of 2022, according to the latest switch data.

In the last three months of 2022, Santander had the highest net switching gains with 29,105, followed by HSBC with 13,119 and then Starling Bank with 9,070.

Monzo Bank and Nationwide were in fourth and fifth place with 6,038 and 3,248 respectively.

Pay.UK noted that at least two digital banks have appeared in the "top five" performing current account providers in each quarter of 2022 despite the lack of incentive programmes.

This suggests that for many end-users, mobile banking and mobile app ease-of-use were important.

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Best and worst banks based on switches from Santander to Monzo - see full list

HSBC came in second place in the last quarter having been beaten out by Santander (SOPA Images/LightRocket via Getty Images)

At the opposite end of the table, Barclays saw the most net switching losses with -18,646.

This was followed by Natwest with -11,525 in second-to-last place, then TSB with -10,400, Lloyds Bank with -4,928, and Royal Bank of Scotland (RBS) with -4,831.

The top reasons customers gave for preferring their new current accounts included online banking facilities (46%) followed by customer service (42%) and mobile banking/banking app ease (40%).

However, the interest rate gained through a current account continues to be the fourth most important factor, with one in four noting this was a reason for them preferring their new account.

The number of people switching their bank accounts through the Current Account Switching Service (CASS) reached its highest level since its launch.

Between October and December last year, Pay.UK saw 376,107 use the CASS service, this was up from the 222,108 switches it had conducted in the previous quarter between July and September.

Monthly switching volumes peaked in November at 157,376, the highest ever recorded and when compared to the same period in 2021 a volume increase of 73%.

Barclays saw the most losses in the last three months of last year (NurPhoto via Getty Images)

October and December had 118,427 and 100,304 switches respectively.

Pay.UK said the high switching totals may signal that consumers and businesses across the UK are reassessing their current account options during the challenging economic climate, looking to accounts that offer services that suit them better or provide switching incentives.

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The high totals at the end of 2022 aligned with a number of strong incentives and offers from current account providers at the time.

David Piper, head of payments operations at Pay.UK, owner and operator of CASS said: “It is encouraging to see the highest level of switches ever this quarter, demonstrating the continued relevance of the service to consumers and businesses across the UK."