Key Trends on Current Account Activity and Switching

• In the second half of 2018 the number of current account switches has fallen, reaching the lowest level in the last 5 years.
• 99% of account switches completed under the Central Bank’s Switching Code were completed within the timeframes prescribed by that Code
• Increase in the value of current accounts held by personal consumers over the period H2-2013 to H2-2018 from €16.2 billion to €31.0 billion

The Central Bank of Ireland has published its ninth Consumer Protection Bulletin, which analyses the level of current account switching using data gathered from credit institutions.

The Bulletin provides a high-level overview of the number and value of current accounts held by personal consumers, the number of consumers using the Central Bank’s Code of Conduct on the Switching of Payment Accounts with Payment Service Providers (“the Switching Code”) and the number of consumer complaints received by firms in relation to current accounts.

The key trends include:

• The number of current accounts held by personal consumers has decreased by 1.5% to 5,345,752 over the reporting period H2-2013 to H2-2018.
• There continues to be an increase in the value of current accounts held by personal consumers over the period H2-2013 to H2-2018 from €16.2 billion to €31.0 billion.
• The number of consumers switching current accounts to a credit institution under the Central Bank’s Switching Code in H2-2018 was 1,542, the lowest level of switching observed in the reporting.
• While switching levels remained low, over 99% of the current account switches completed under the Switching Code were completed within the timeframes prescribed by that Code for the eight most recent reporting periods.
• The number of complaints as a percentage of the total number of current accounts is less than 1%.

Notes:

1. For the purposes of this Bulletin, current accounts are payment accounts offered by credit institutions. Payment accounts can also be offered by other payment service providers including payment institutions and e-money institutions.
2. Payment accounts are accounts that are used primarily for the execution of day-to-day payment transactions and through which the consumer or consumers holding the account may— (a) place funds, (b) withdraw cash, and (c) execute and receive payment transactions, including credit transfers, to and from a third party.
3. Because different banks have different fee structures and charging rules it may be possible to make savings by switching current accounts. The Switching Code is designed to make switching payment accounts quick and easy. In addition, the Competition and Consumer Protection Commission (CCPC) provide further information and up-to-date comparisons of current accounts fees, including details of how to qualify for free banking, where it is available. This information is available on the CCPC website at https://www.ccpc.ie/consumers/financial-comparisons/current-account-comparison/
4. The Switching Code provides for:
   • A smooth, efficient switching process for the consumer;
   • Consistency of approach to the process by all relevant institutions; and
   • Protection and support for consumers contemplating, undertaking and/or completing the switching process. 
5. In September 2016, following the introduction of the Payment Accounts Directive, the Switching Code was revised and renamed the “Code of Conduct on the Switching of Payment Accounts with Payment Service Providers”. The Switching Code now applies to credit institutions, payment institutions and e-money institutions that offer payment accounts.