Switching Preferences of Thousands of British Citizens Towards Nationwide, Monzo, and HSBC - Banks Experiencing a Decline in Popularity
In the ever-evolving world of banking, customers are increasingly seeking out financial institutions that offer competitive interest rates to help them save more and protect their hard-earned money from the eroding effects of inflation. This shift in consumer behaviour has led to a surge in bank switches, with many high street banks losing customers to those offering inflation-beating savings accounts.
According to the latest reported quarterly switching figures from 2025, Nationwide leads the pack with an impressive net gain of 55,578 switches in the first quarter of the year [2]. Monzo Bank follows closely behind with 8,850 net gains, while HSBC rounds off the top three with 5,621 net gains [2]. Nationwide has consistently maintained this leading position for three successive quarters, including the end of 2024 [2].
While specific net switching losses figures for 2025 have not been explicitly reported for all banks, it can be inferred that some major banks, such as Barclays, TSB, Lloyds, Santander, NatWest, and First Direct, may have smaller net gains or possibly net losses despite offering switching incentives [2][5]. However, the least popular banks in terms of net customer departures for 2025 are not provided in the available data.
The Current Account Switch Service (CASS) reports that more than 11 million bank switches have taken place since 2013 [6]. This service ensures that the switch process is seamless, with all direct debits, standing orders, and new payments automatically transferred to your old account within seven days.
Nationwide's attractive offerings, such as the £100 Fairer Share bonus, the Thank You bonus, and member-only savings products, have likely contributed to its popularity among switchers [4]. June 2025 saw a record high of 88,146 switches, making it the busiest month this year [6].
Five banks and building societies, including Nationwide, HSBC, Santander, TSB, and The Co-operative Bank, have offered cash bonuses of up to £310 for customers switching their accounts [5]. Depending on the type of account you hold, your bank may already be offering better savings rates, travel perks, or spending benefits.
Switching banks can have an impact on your credit score, but this effect is usually temporary and minor if done correctly. As more customers prioritise their savings and seek out better deals, the trend of bank switching is expected to continue.
With 90% of customers in the last three years being happy with the switching process, it has never been easier to make the switch. Access to online banking was the most frequently cited reason for choosing a new account, mentioned by 47% of respondents [7]. In the last 12 months, there have been nearly one million switches, underscoring the growing demand for competitive banking services.
As the landscape of British banking continues to evolve, customers are taking control of their financial futures by switching to banks that prioritise their savings and offer attractive incentives. With the ease of the Current Account Switching Service and the potential for significant savings, it's no wonder that bank switching is on the rise.
References:
- Current Account Switch Service (CASS) data
- UK's top switching banks in Q1 2025
- Switching banks impact on credit score
- Nationwide's bank switching bonuses
- UK banks offering cash bonuses for switching
- Record high bank switches in June 2025
- Reasons for choosing a new account
- In an attempt to bolster their personal finance and savings, many customers are subscribing to newsletters from financial institutions that provide insights on competitive interest rates, business strategies, and personal-finance tips.
- The surge in bank switches has led to increased competition among financial institutions, with some offering personal-finance products, such as inflation-beating savings accounts, cash bonuses, and member-only savings products to attract customers.
- As more customers prioritise their savings and business growth by switching to competitive banking services, the trend is expected to continue, with financial institutions likely to focus more on personal finance and offering attractive incentives to retain and attract customers.
