'Poor service causes current account switches'

02 February 2006
Poor current account service is leading many consumers to change accounts, according to a new study.

Nearly half (48 per cent) of Britons said that bad customer service was a significant factor in deciding to switch current accounts, according to research from YouGov on behalf of Deloitte.

Overall, 45 per cent of British people have changed accounts, the survey found.

A third of those who changed their account said that the interest rates that their new bank was offering were an important factor, but just one in five said they decided to make the move in order to find a better deal.

Just one in 17 said they changed their current accounts because they thought they were getting a raw deal.

"While innovative products and competitive rates are important, it's service quality that makes or breaks the customer relationship," said Nick Sandall, head of retail banking at Deloitte.

"As the retail banks strive to become more cost-effective, service-related initiatives are often the first to go. This could be a short-sighted approach."

Young Britons aged between 18 and 29 were found to be the most likely to change banks to look for better rates, while the over-50s were twice as likely to change providers.

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