TSB customers have been voting with their feet and deserting the beleaguered bank, new current account switching figures reveal.
In the second full quarter of this year (1 April – 30 June), TSB reported the greatest level of net losses. Although it gained 5,149 accounts, it lost 21,790 giving it a net loss of 16,641.
Combined with figures from the beginning of 2018, TSB lost 21,767 customers in the first six months of the year. This is stark contrast compared to net gains of 52,588 customers in 2017.
A total of 5.1m current accounts have been switched since the launch of the current account switching service launched in 2013, with more than 99.4% of switches being successfully completed within the required seven-day timescale.
Nationwide had a net gain of 34,577 followed by HSBC at 25,605. Pay.Uk suggests these figures are likely to be high thanks to switching incentives: Nationwide currently offers a £200 friend referral scheme (£100 each when existing customers encourage a friend to switch) while HSBC offers £150 when you switch followed by a further £50 if you stay for 12 months.
TSB meanwhile is likely to have been still reeling in the aftermath of its IT switchover in April which saw thousands of customers struggle to access their accounts and make online payments. Fraudulent attacks on TSB customers also soared in the wake of the crisis.
Commenting on the numbers Andrew Hagger, of Moneycomms says: “As expected customers voted with their feet on the back of the TSB IT fiasco with the bank losing a net 16,641 customers to rivals - the only real surprise is that this figure wasn't much higher although the discontent could rumble on and we may yet see a similar outflow of accounts when the next quarterly figures are released next January.”
The research also shows that new banks are faring well with Monzo – the app only bank – enjoying net gains of 2,702 and Starling Bank up by 1,737.
Mr Hagger adds: “It's also good to see the digital banks figures being reported, even more so as they reveal that both Monzo and Starling Bank both outperformed banking giants including Halifax, Lloyds Bank, NatWest and Barclays - it's a sign that trust is building in new tech challengers and hopefully they will continue to grow and become a greater force in the current account market.”