Most consumers go decades without switching bank CMA report sheds light on poor switching rates
21 May 2015
More than half of consumers have held the same current account for ten years or more, according to new figures.
Data released by the Competition and Markets Authority (CMA) suggests that 57% of people have gone more than a decade without switching their main current account, while 37% have held the same account for at least 20 years.
The report also suggested that only 3% of consumers have switched their main current account supplier in the last year.
Find out more: Bank accounts - more than 70 accounts reviewed
Current account loyalty
The report analysed switching levels across seven different financial markets over the last three years.
It found that customers were more likely to switch providers for their car insurance (45%), energy (31%), internet (26%), mobile phone network (23%), savings account (13%) or mortgage (9%) than they were for their current account (8%).
Nine out of 10 respondents said they were satisfied with the main current account provider.
However, previous Which? research has suggested that more than half (52%) of consumers who haven't switched bank say they'd be more likely to if it was easier to compare accounts.
Find out more: Best banks for customer satisfaction - see how your bank compares
Consumers keen to make use of multiple bank accounts
The research revealed that 48% of consumers now hold more than one current account, while 31% hold current accounts with more than one bank.
This may reflect the fact that many current accounts now offer better interest rates on in-credit balances than those available in the savings account market. Indeed, the CMA found that the number of accounts paying credit interest has increased from 8% in 2011, to 25% in 2014.
Find out more: Making the most of multiple bank accounts - make your money go further
CMA retail banking investigation continues
The data was released alongside an updated issues statement for the CMA's retail bank market investigation.
The investigation is examining competition in the personal current account sector, with particular focus on customers' ability to effectively shop around, market concentration and barriers to entry for challenger banks.
The regulator is due to publish provisional findings and recommendations in September 2015.
Find out more: How to switch bank accounts - a step-by-step guide