Aimia Response to Payments Council Current Account Switching Data

///Aimia Response to Payments Council Current Account Switching Data
Aimia Response to Payments Council Current Account Switching Data 2017-11-15T21:07:24+00:00

23.04.2015

“BANKS NEED TO DO MORE TO WIN THEIR CUSTOMERS’ LOYALTY”

23 April 2014 – New research from Aimia, the data driven marketing company, indicates banks are not doing enough to keep their customers from moving to another provider even as customer apathy to switching bank accounts falls significantly. The findings follow new data released by the Payments Council today which shows that in the 12-month period from 1 April 2014 to 31 March 2015 there were 1.14 million switches, up from 1.06 million switches in the same time period one year before.

Aimia’s Loyalty Lens research, which has monitored consumer attitudes quarterly since 2013, shows only 15% of customers currently remain with their bank because they ‘can’t be bothered to change’. This is a significant drop from the one in five (20%) who said the same in 2013, before the Current Account Switch Service* was introduced.

Only 5% of people say they remain loyal to their bank because they feel their bank understands their specific requirements, and many feel their banks do not communicate with them in a way that fits their needs. Only 1 in 10 people (11%) say communications from their bank and building society are really relevant to their interests and just 6% say they remain with their bank because they are being rewarded for their loyalty.

Charlie Humphreys, Managing Director, Business Development EMEA at Aimia, said:

“It is easier than ever for consumers to switch current accounts, and banks and building societies need to work harder to attract and retain their customers. Many banks are not currently getting their communications mix right, nor are they giving their customers a compelling reason to stay. Banks that don’t work hard to build strong relationships may well find their customers looking elsewhere.”

These findings are supported by the Payments Council’s latest figures. Between January and February there was a 22% rise** in the number of people switching their bank provider, which was the biggest month on month increase in the past year. Data from this month showed a 27% increase on February’s numbers (91,615 in February; 115,920 in March).

When asked which tactics have the most influence on them, a third (33%) of people said loyalty rewards. The next biggest influence is word of mouth from family and friends (15%), then price reduction (10%), advertising (7%) and promotional offers (7%).

Media Contacts

Elle Macgregor-Chatwin
Headland
+44 (0)207 367 5215
Aimia@headlandconsultancy.com

Pippa Murphy
Headland
+44 (0)207 367 5214
Aimia@headlandconsultancy.com

* The Current Account Switch Service was introduced in Sept 2013 and allows consumers to switch banks within seven working days.

** Numbers of customers changing bank current account provider
January 2015: 74,938
February 2015: 91,615

Loyalty Lens research conducted by Research Now:

  • 13 March 2015 among 2,011 UK adult respondents
  • 14 June 2013 among 2,004 UK adult respondents

About Aimia

Aimia Inc. (TSX:AIM) is a data-driven marketing and analytics company. We provide our clients with the customer insights they need to make smarter business decisions and build relevant, rewarding and long-term one-to-one relationships, evolving the value exchange to the mutual benefit of both our clients and consumers.

With close to 4,000 employees in 20 countries, Aimia partners with groups of companies (coalitions) and individual companies to help generate, collect and analyze customer data and build actionable insights.

We do this through our own coalition loyalty programs such as Aeroplan in Canada and Nectar in the UK, and through provision of loyalty strategy, program development, implementation and management services underpinned by leading products and technology platforms such as the Aimia Loyalty Platform and SmartButton, and through analytics and insights offerings, including Intelligent Shopper Solutions. In other markets, we own stakes in loyalty programs, such as Club Premier in Mexico, Air Miles Middle East and Think Big, a partnership with Air Asia and Tune Group. Our clients are diverse, and we have industry-leading expertise in the fast-moving consumer goods, retail, financial services, and travel and airline industries globally to deliver against their unique needs.

For a full list of our partnerships and investments, and more information about Aimia, visitwww.aimia.com.