Over half of customers faced 'challenges' switching bank accounts

Sixty per cent of people switching banks have encountered "challenges" in relation to things direct debits and payments, ahead of the closure of Ulster Bank and KBC branches. 

The Competition and Consumer Protection Commission (CCPC) has published its second wave of research on KBC and Ulster Bank current account switching.

It shows that 52% of consumers who have their main account with Ulster Bank or KBC have opened a new account, with almost two-thirds of Ulster Bank customers who plan on switching expecting to have done so within the next month

The research found that 1 in 8 consumers have yet to decide on a new provider, compared to 1 in 4 in July. Almost one in four consumers are prepared to consider an online-only banking provider without branch services in Ireland but 73% would not consider it.

60% of consumers reported challenges switching, with transferring direct debits and payments (29%) continuing to be the most significant issue, with a further 10% reporting difficulties in accessing in-person support.

Of consumers who had already switched, 28% said a local bank branch was the main reason for choosing their new provider, particularly for those over the age of 65 (49%). Having a previous or existing relationship with their bank (26%) was also an important factor.

CCPC urges people to remember to research and compare their switching options carefully.

It urges people to ensure they find a new current account provider that best suits your needs.

For more information on switching current accounts and personal finances, visit the CCPC  Switching Hub.