Best and worst banks: Halifax and Starling the big winners as customers ditch HSBC

The latest switching figures reveal the banks most people are switching to – and those that are losing customers by the bucketload.

Halifax and challenger bank Starling are the big winners from the latest quarterly switching figures, while HSBC and Santander have lost the most customers.

Bank customers made a total of 212,600 switches through the Current Account Switch Service (CASS) between July and September 2021, which is 29,855 higher than the previous three month period.

Note that the CASS figures only cover switches where the person's old bank account is closed. 'Partial switches', where the customer chooses to keep their old account as well are not included, so the true total of switchers will be higher. 

While it's interesting that more people are switching overall, the really useful stats can be found by looking at the specific banks and building societies that gained and lost the most customers.

This data is provided by Pay UK, the retail payments authority.

As it takes a while to pull these together, the latest stats available are for the second quarter of 2021 (1 April-30 June).

Here's what these stats reveal, starting with the biggest winners.

Fancy joining Starling? Take a look at the bank's current accounts here

Best UK banks

Halifax has the highest net switching gains at 16,684 followed by Starling Bank.

The number of new Halifax customers (25,847) far outweighed those who left the bank (9,163) over the quarter.

In April, Halifax offered a £100 switching reward, which may have encouraged more people to join during the April to June quarter.

Meanwhile, Starling added another 15,185 customers and lost 1,465 customers, leaving it with net gains of 13,720.

Other banks to enjoy a net gain of customers were Virgin Money, Monzo, Lloyds, Nationwide, Bank of Scotland, Triodos Bank, Co-operative Bank and Danske Bank.

See the table below for the full list of winners.

Brand

Gains

Losses

Net gains

Halifax

25,847

9,163

16,684

Starling Bank

15,185

1,465

13,720

Virgin Money

12,309

5,394

6,915

Monzo Bank

8,759

3,052

5,707

Lloyds Bank

13,483

9,608

3,875

Nationwide

13,498

9,897

3,601

Bank of Scotland

4,519

1,573

2,946

Triodos Bank

1,209

81

1,128

The Co-operative Bank

4,252

3,465

787

Danske Bank

452

262

190

The best bank accounts for switching bonuses

Worst-performing banks

HSBC lost the most accounts overall during the second quarter of 2021, as 66,756 customers ditched the bank while only 50,192 joined.

This left HSBC with 16,564 fewer customers overall.

Santander had the second-highest losses as 19,146 customers left the bank and only 7,970 joined, leaving it with a net loss of 11,176.

These losses may have been compounded by the fact that the bank suffered IT issues during the quarter: in May, thousands of customers had no access to online, app and telephone banking services due to a technical issue, which may well have convinced some to look for a new bank.

HSBC and Santander aren’t the only big names to struggle, however, with a significant number of well-known banks clustered towards the bottom of the table.

You can check out the full list below.

Brand

Gains

Losses

Net losses

HSBC

50,192

66,756

16,564

Santander

7,970

19,146

11,176

TSB

3,278

12,769

9,491

NatWest

6,645

14,096

7,451

Royal Bank of Scotland

1,602

7,790

6,188

Barclays

6,457

10,053

3,596

Tesco Bank

65

1,108

1,043

Bank Of Ireland

39

540

501

Low Volume Participants

531

936

405

AIB Group (UK)

101

253

152

Ulster Bank

257

397

140

The best bank accounts for switching bonuses

What matters to us?

It's clear that switching incentives continue to play a key role in the switching merry-go-round.

For example, we've seen banks go from near the top of the table all the way to the bottom after withdrawing a juicy offer. Similarly, a juicy switching bonus often drives a bank up the charts.

Regardless, the common themes among the banks that consistently appear at the top of these switching tables every year are excellent account features and customer service.

*This article contains affiliate links, which means we may receive a commission on any sales of products or services we write about. This article was written completely independently.

Want more stories like this? Head over to the loveMONEY homepage, follow us on Twitter or Facebook or sign up for our newsletter and let us send the news to you!

 

Comments


Be the first to comment

Do you want to comment on this article? You need to be signed in for this feature

Copyright © lovemoney.com All rights reserved.