Almost half the British banking customers that switch current accounts do so because of poor service, according to new research.
Bad service from their current financial services provider prompts 48 per cent of current account holders to take their business somewhere else, research from YouGov, on behalf of Deloitte, reveals.
It was found that 45 per cent of current account holders have switched financial services providers.
When changing, the price and security offered by the new financial services provider is more important to the current account holders, they said.
More than a third said the interest rate offered by the new provider is important, but only a fifth said they made the switch in a bid to find a more competitive deal.
"While innovative products and competitive rates are important, it's service quality that makes or breaks the customer relationship," head of retail banking at Deloitte, Nick Sandall, comments.
"All the banks are competing for the same customers and loyalty is key if they are to grow their market share."
He says banks should try to set themselves apart by providing a better customer experience.
Current account holders between the ages of 18 and 29 were found to be the most likely to change financial services providers in search of better interest rates.
For banking customers over the age of 50, however, convenient location of a financial services provider would be the most important consideration for switching, the survey shows.
Banking customers blame service for switch
Financial Services > e-banking > Banking news
Banking customers blame service for switch
Thu, 02 Feb 2006
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