More than half of Ulster Bank and KBC Bank Ireland current account customers are still to open an account with another bank as the lenders progress with plans to exit the Irish market.
Research from the Competition and Consumer Protection Commission shows 81% of customers with the two banks plan to switch to a new current account provider, but only 44% have opened a new account.
The research shows that Ulster Bank customers (47%) were more likely to have already opened a new current account than KBC customers (27%), and a fifth of respondents (20%) said they had decided on their new bank but have yet to open their account.
More than a third of KBC customers (35%) who answered the survey said they had decided on a bank but not switched compared to 18% of Ulster Bank customers. A further 15% said they had started to compare the options but hadn't selected which bank to open their new account with.
Over a quarter (29%) said they would consider switching to an online-only current account provider such as Revolut, rising to 52% customers of KBC, which has no traditional branches in Ireland, but falling to 24% among Ulster Bank customers.
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Respondents who had completed or started the process of switching identified transferring Direct Debits (13%) as the biggest challenge, followed by a lack of suitable alternatives (8%), difficulties in accessing in-person support (7%), too much documentation required (7%) and difficulties in switching multiple financial products to a new provider (7%).
The research insights also showed that 7% of respondents felt the biggest challenge was the amount of time and hassle it took to switch, with Ulster Bank customers (15%) more likely to note this as their biggest switching challenge, as well as those switching their main current account (16%).
Nearly two-thirds were unaware of the Central Bank’s Switching Code, which sets out the rules that most providers must follow when customers are moving their current account to another provider, and the CCPC has now set up a switching hub with information and advice.
"Our research found that 44% of KBC and Ulster Bank customers who intend to switch current accounts have already opened a new account and begun the process of switching," said Brian McHugh, CCPC commission member.
"We are very aware that switching a current account can be challenging for consumers, particularly those on low incomes. Consumers need to be very proactive to ensure that all Direct Debits are moved over to their new account to ensure key payments on bills and loans go through without disruption."
(Pic: Getty Images)
