The latest figures from the Current Account Switch Service (CASS) show 21,790 consumers switched away from TSB between April and June this year, at the height of its IT meltdown. This represented a net loss of 16,641 customers for the bank.
It is the biggest fall in customers for TSB ever recorded as part of the switching service’s figures, although heavier losses have been reported in the past from Barclays, which lost net 17,268 customers in the first quarter of 2018.
TSB, however, says the CASS figures are just one part of the picture, and in total it saw more than 20,000 customers open new accounts during this period. Though it’s not clear how many closed their accounts.
The IT disruption started on 20 April, and saw many locked out of online banking and their mobile apps. In some cases customers were even given access to other people’s accounts and in other cases customers were stopped from switching to another bank. Wider problems continued throughout the summer, and some customers are still awaiting compensation.
The latest CASS figures also show that over five million bank switches have been completed using the official seven-day switching service since its launch in 2013, with almost a million switches in the last 12 months alone. Yet this still represents a tiny fraction of the total UK current account market, meaning many more could benefit from switching.
See our Best Bank Accounts guide for top switching offers – including how to get £200 cash or £185 in vouchers.
How does bank switching work?
CASS was launched in 2013 to simplify the process of switching between banks.
It’s completely free – you simply contact the new bank or building society you want to switch to and ask it to move your old account using the CASS (often this is part of the application process).
You can choose a switch date to suit you as long as you allow at least seven working days.
All payments going in and out, except for recurring payments set up with a debit card such as a gym membership, will be moved to your new account. Any wrongly applied charges, eg, for a missed direct debit, will also be refunded.