A new study into the reasons why people switch banking accounts suggests that customer service is more of a motivating factor than competitive lending rates.
According to research from financing website moneysupermarket.com, 39 per cent of people in the UK have never changed their current account provider and have instead chosen to remain loyal to their banking institution.
Meanwhile, eight per cent of account holders switched during the last year.
Of the people who do change financial services providers, 29 per cent explained that they moved because of poor customer service or a bad experience, whereas 13 per cent revealed that they had moved to take advantage of better lending rates on their credit balance.
Stuart Glendinning, managing director at the financing website, urged more people to consider switching in order to benefit from competitive rates.
"My advice if you either have a constant credit balance or are constantly in your overdraft is to shop around now for a provider which will reward you," he said.
"It is likely a lot of people will have time to build up another good relationship with their current account provider."
In related news, earlier this month saw fellow financing website MoneyExpert challenge current overdraft rates.
According to the site, the average interest repayment on an unauthorised overdraft currently stands at 25.4 per cent, although this figure can be halved if debtors shop around.
Bad customer services motivates people to switch banking accounts, study suggests
Financial Services > e-banking > Banking news
Bad customer services motivates people to switch banking accounts, study suggests
Mon, 29 Jan 2007
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