Current Account Switch Report: Santander Destroys the Big Four
Recent data published by Bacs has shown that Santander are very much reigning supreme in British banking. The Spanish maestro enjoyed remarkable growth up to summer 2015, acquiring a mass of fresh current account holders from the Big Four. With the exception of Halifax, it is clear that the British public are losing their patience with the majors; Barclays and the RBS Group in particular each look in poor shape. This data was published in January 2016 that has reported on the share of switches made between April 1st and June 30th (2015). They are running in 6 months arrears and the next set of results will be published in April.
Bacs who are owned by leading banks and building societies control the Current Account Switch Service that was launched in September 2013. Over 40 UK banks and building societies are signed up to it. The data below factors every key player with the exception of Metro Bank. Santander was certainly the big winner here, although you do wonder how well they will fair across 2016 now that they have increased their 123 running cost to £5 monthly. What has really helped them to make such strides has been their 3% interest rate paid on balances up to £20,000 as well as cashback bonuses. They don’t actually offer switching rewards unlike others who usually offer between £100 and £125.
The Big Four Banks:
Notes: MC = 2015 market cap. This is joined by individual stats for Gains, Losses and Net Gains/Losses.
HSBC Holdings (MC= 9th)
– HSBC: (22,662) (36,065) (-13,403)
= 13k overall loss looks bad, but this is actually the 2nd best tally.
Lloyds Banking Group (MC= 12th)
– Halifax: (62,229) (27,866) (34,363)
– Lloyds Bank: (13,191) (28,544) (-15,353)
= Halifax clearly putting the core brand to shame.
Barclays Plc (MC= 23rd)
– Barclays: (6286) (33,402) (-27,116)
= 27k overall loss is the largest single drop.
Royal Bank of Scotland Group (MC= 28th)
– NatWest (15,586) (31,865) (-16,279)
– RBS (2004) (17,704) (-15,700)
= Collectively 32k down. RBS shockingly gained just 2004 accounts.