One week into the big campaign to get more of us switching current account provider, the early evidence suggests that applications from consumers looking to move have doubled in the case of some banks.
Billed as the biggest shake-up in the banking industry for years, the rules that came into effect last Monday mean you can now get a fully functioning, newly switched current account in just seven working days.
New service guarantees require the bank to do all the work, and to make good any problems that arise as a result. Campaigners are hoping these measures will be enough to persuade disaffected bank customers to overcome their fears and switch current account provider.
It has been impossible to open a newspaper this week without seeing adverts tagged with the "switch guarantee" logo. They are part of a campaign by the Payments Council, which has introduced the measures, and the banks, which are hoping to grab a bigger market share. Although all involved say it is too soon to come up with actual figures, the "gainer" banks have reported branches and call centres noting a big jump in people looking to move accounts.
First Direct, one of the banks that arguably has the most to gain as a result of the process, says it has seen twice as many people as usual contacting it this week. Some are no doubt responding to its "We'll give you £125 if you like us, £225 if you don't" offer.
A First Direct spokeswoman says: "We've been delighted with the response to the new current account service. I really hope this is the start of some sustained movement in the switcher market so customers can take the opportunity to find a service that is right for them."
Halifax, which has been heavily advertising the £100 bonus those moving across to its popular Reward account receive, reckons it has seen a 90% uplift in the number of people moving since Monday.
"Seven-day switching will help create more trust and confidence in switching," a Halifax spokesman says. "Prior to launch, a new customer was making the switch to Halifax every two minutes on average, but since then we have seen an immediate rise in the number of full switchers choosing one of our current accounts."
Santander says it has seen a surge in interest on the back of the campaign. In the first six months of this year the bank says 131,000 new customers moved from other banks and building societies to take advantage of its 123 account, which pays decent in-credit interest and offers cashback on certain purchases.
Nationwide, which has been making much of its mutual building society status with its "You don't need a bank" campaign, says it hopes to have initial figures next week on the numbers of accounts that have been switched.
Phil Smith, the society's head of current accounts, says: "Our branches are already reporting positive feedback on the new service, and we expect the number of people moving their current account to Nationwide to continue to increase as awareness and confidence in the new service grow."
He says that of the 1.2m bank account switches conducted last year, 123,000 were to the society.
Seven-day switching was designed to loosen the grip the "big four" high street banks have on 80m current accounts. Customers simply fill in a form, the bank you are switching to does the rest. All existing payment arrangements such as direct debits and standing orders, along with regular payments coming in – salary, pension etc – will be transferred automatically.
For the first time the switching service is backed by a guarantee that you will be fully refunded and won't lose out if the system fails in any way.
In addition, a central redirection service will make sure any payments erroneously sent to the old account after the switch date are redirected automatically to the new account for a period of 13 months.
