Business

New adverts to encourage bank switching

Man reads newspaper claiming over 3m people have switched account Image copyright Bacs

A new advertising campaign is being launched to persuade more people to switch bank accounts - because not enough people are doing so.

The Switch Guarantee service was launched exactly three years ago, but the numbers using it have fallen consistently.

In the year to the end of June 2016, the number of switches averaged 88,031 a month.

That compares with a monthly average of 92,448 in the previous year.

Most account holders have steadfastly refused to move, despite incentives worth up to £220 being offered by banks and building societies.

Bacs, the organisation responsible for the switching service, will launch the new advertising campaign in newspapers, social media and online this weekend.

New entrants

The adverts will feature a man reading a newspaper with a headline claiming that more than three million people have moved account since September 2013.

Official figures show there have been 3.2 million switches over the period, including those who have moved more than once.

There are as many as 68 million current accounts in the UK.

There will also be a new website to show people how to switch within seven days.

As part of its recent inquiry into current accounts, the Competition and Markets Authority (CMA) required that there should be a publicity campaign to persuade more people to move their accounts.

The government has been keen to encourage greater switching levels, to encourage new entrants into the banking market.

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