UK account switching hits yearly high amid digital banking boom

By Vriti Gothi

In June 2025, the UK’s Current Account Switch Service (CASS) recorded 88,146 completed account switches, the highest monthly total of the year to date. According to figures released by Pay.UK, which operates the service, there were 216,519 switches in total during Q2 2025. Over the past 12 months, nearly one million accounts (996,344) were switched. The increase in switching activity reflects continued consumer movement within the retail banking sector, with digital access and service usability playing a central role in decision-making.

Since its inception in 2013, CASS has now facilitated more than 11.9 million account switches and successfully redirected over 166.8 million payments. Importantly, the process continues to uphold its reliability and efficiency, maintaining a 99.6% switch completion rate within seven days in Q2 2025. This performance continues to reinforce consumer trust in the platform and demonstrates the system’s role in enabling smooth transitions across financial institutions.

One of the standout developments in this quarter’s report is the performance of Monzo Bank, which became the first neobank since 2022 to rank in the top three for net switching gains. Between January and March 2025, Monzo added 8,850 new accounts, reflecting a notable shift in consumer preference toward challenger banks with a digital-native edge. Leading the quarter was Nationwide, which posted a substantial 55,578 net gain, followed by HSBC with 5,621.

CASS’s consumer insight data points to digital functionality as the key driver of switching behaviour. Of those who switched in the last quarter, 47% cited access to online or mobile app-based banking as their primary reason for moving to a new provider. Other top motivators included higher interest earnings (37%), improved customer service (31%), spending benefits (24%), and lower account fees or charges (24%).

John Dentry, Product Owner at Pay.UK, said, “The fact that the top three spots are occupied by a legacy bank, long-standing building society, and a neobank, shows the depth and diversity of the UK banking system. With nearly a million switches in the past 12 months, the Current Account Switch Service continues to play a key role in facilitating a healthy and competitive banking market. I look forward to seeing how the landscape evolves across the latter half of this year.”

This trend signals a broader transformation in consumer expectations. Digital capabilities are no longer a “nice-to-have”; they are now table stakes for customer acquisition and retention in the retail banking sector.

Customer satisfaction with the switching process remains robust. An impressive 90% of users who switched accounts in the last three years reported being satisfied with the service, and 87% said they would recommend it to others. Public awareness of the service also remains high at 75%, ensuring strong engagement and trust in the platform.

With the second half of 2025 underway, both incumbent institutions and FinTech challengers are under pressure to adapt and innovate. The latest switching data clearly shows that digital user experience, personalised value, and seamless service delivery will remain critical competitive differentiators.

As Monzo’s rise illustrates, challenger banks with strong digital infrastructure are gaining serious ground. The coming months will be crucial in determining whether more neobanks and FinTechs can break into the upper ranks signalling not just a shift in switching volumes, but in the very foundations of customer loyalty in banking.

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