2.4 million Brits deserted UK’s big banks after scandals


6:22 pm - June 12th 2013

by Newswire    


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2.4 million customers left the UK’s five biggest banks in 2012, according to new figures announced by Laura Willoughby MBE, at the City and Common Good debate in St Paul’s Cathedral this evening.

The figures show strong movement away from the big banking groups: Lloyds, RBS, Barclays, HSBC and Santander. It illustrates a move by people to vote with their feet by switching who they bank with.

The news comes as a boost to local, ethical and mutual financial service providers who increased their customer base significantly.

Launching the findings, Laura Willoughby MBE, Chief Executive of campaigning website MoveYourMoney.org.uk, said:

The constant slew of scandals last year has opened the floodgates, and people are beginning to realise that they don’t have to put up with the arrogance of the big banks.

People are switching because they are angry about the lack of reform in Britain’s broken banking system, and have decided to take matters into their own hands.

This shows that real change won’t come from Westminster or the boardroom, but from ordinary people putting their foot down and saying ‘enough is enough’

The data is drawn from industry studies and based on quarterly publicly available polling.

From September the rules governing switching bank accounts will change, limiting the time it will take to change banks to only 7 working days.

Separate research from YouGov predicts that the number could be as high as 14 million.

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Reader comments


The polling “…predicts that the number could be as high as 14 million”, but what it’s saying is that up to 14 million people would be likely to move from their current bank at some point.

It doesn’t say anything about where they’d move to; a sizable portion of that fourteen million would presumably move from Barclays to RBS or vice-versa…

“2.4 million customers left the UK’s five biggest banks in 2012, according to new figures announced by Laura Willoughby MBE, at the City and Common Good debate in St Paul’s Cathedral this evening.

The figures show strong movement away from the big banking groups:”

So, err, did 2.4 million people then open bank acounts with banks not in the top 5?

Or, as above, what was the ratio of churn to moving to a new paradigm?

The first of the banks to run into liquidity troubles in the autumn of 2007 and experience a bank run was Northern Rock, a relatively small bank.

There are at least five separate issues: (a) the stricter regulation of banking to rein back excessive risk taking by the banks in pursuit of profits; (b) preventing more mis-selling scandals – as well as insider trading; (c) promoting greater competition between banks in Britain where the retail banking market is highly concentrated in comparison with many other affluent countries; (d) creating a market structure for banking in which no bank is “too big to fail” while continuing to insure depositor protection in retail banks; (e) what to do to prevent asset-price bubbles developing.

In the news from the FT: Haldane warns on dangers of looser borrowing rules for banks: “Andy Haldane, the Bank of England’s director of financial stability, has warned that it would be dangerous for the government not to tighten its borrowing restrictions on banks in the long term.”

4. Matt Wardman

Remarkable.

The figure is double the one she quoted for “people switching their accounts in 2012” on April 13th.

“Last year 1.2 million people switched current accounts – up from 600,000 in 2009 – but this is still only 2.5% of all customers.”
http://www.guardian.co.uk/money/2013/apr/14/switch-banks-current-accounts

Or perhaps 1.2 million people have moved exclusively to cash.

Without fully published data, colour me a little more than sceptical.

5. Matt Wardman

For what it’s worth, I’d reconcile it as 1.2m or so being the standard 2-3% churn amongst big bank accounts, while 1.2m do seem to have switched away.

That represents a market share fall from perhaps 80% to 78%, which is an achievement of sorts.

Whether the Co-op problem will send it the other way remains to be seen.

The missing data is where they went and MYM’s contribution to that.

I still don’t understand this need to exaggerate by not counting all the data and leaving out the proof which is alleged to exist.

6. Matt Wardman
7. Me Myself And I

Through past experience I have encountered a lot of problems with banks. Eventually I had had enough and decided to open a building society account instead. I am so glad I did as I am now always in credit and stress free. Banks in my opinion are run very badly and they are very greedy with bank charges fines etc.


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