Current accounts up 38% at Co-operative

Co-operative Bank, the UK’s
second-largest mutual, has revealed a 38 percent increase in
current account customers during 2009.

The Co-op continued to attract account
switchers from the traditional Big Four UK groups: Lloyds, Royal
Bank of Scotland, Barclays and HSBC, with a 31 percent increase in
customers ditching those banks in favour of the Co-op during
2009.

According to the bank, reasons for customers
switching current account provider included a desire to receive
better customer service (29 percent), better online banking (23
percent), and access to a local branch (19 percent).

The lack of a transparent fee-charging
structure at their previous bank was mentioned by 14 percent of
customers switching to the Co-op. Only 10 percent said a wish to
bank with a more ethical financial services provider, at the heart
of the Co-op’s business strategy.

Unsurprisingly, the Co-operative scored the
greatest success in attracting customers from its bailed out
rivals, with Royal Bank of Scotland, Halifax and Bank of Scotland
the three brands to show around a doubling in account switchers to
the Co-op in 2009 compared with 2008 (see table
below).

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