A major shift is underway in the UK banking sector, with households rushing to open new current accounts with Nationwide Building Society to secure a free £175 payment.
Unprecedented Switching Figures
New data from the Current Account Switch Service (Cass) reveals the staggering scale of this movement. More than 111,000 current account switches took place in July alone, contributing to the busiest quarter of activity between July and September, which saw approximately 265,100 switches.
Over the past year, the trend has been even more pronounced, with more than a million current account switches processed across the UK banking market. The Cass service, which facilitates the automatic transfer of payments and direct debits to a new provider, has been central to this activity, though it's important to note that some people move their money outside of this system.
Nationwide Leads the Pack
Nationwide Building Society emerged as the clear winner in the third quarter, gaining the highest number of new customers. More than 54,000 people switched to its current accounts, with many motivated by the attractive £175 switching incentive.
Tom Riley, Director of Group Retail Products at Nationwide Building Society, commented on the surge: “It's never been more rewarding to be a Nationwide member and that’s why we want to help more people benefit by offering this switching offer!”
To qualify for the £175, customers must complete a full switch using the Current Account Switch Service and must not have previously benefited from a Nationwide switching offer.
The Wider Banking Landscape
While Nationwide enjoyed significant gains, other banks also saw net inflows, though on a smaller scale. The Co-op Bank gained almost 9,200 switchers, while both Monzo and HSBC attracted around 8,200 new customers each.
Conversely, some banks experienced substantial outflows. Santander was notably impacted, losing approximately 23,000 accounts during the same quarter.
John Dentry, product owner at Pay.UK – the owner and operator of Cass, reflected on the service's impact: “We’re immensely proud to have facilitated over one million switches per year since our launch. Especially in a time where personal finances are tighter than ever, maintaining a healthy and agile banking market is crucial.”
This data highlights a highly competitive period for UK retail banking, with cash incentives proving to be a powerful tool for attracting new business from cost-conscious consumers.
