Money News

Thousands switch to Co-op current account

Thursday, 7 May 2009

Writes Hazel Cottrell
hazel.cottrell@consumerchoices.co.uk

Brits are voting with their feet and switching to the Co-op in hoards, as they lose faith in other high street banks.

The number of people switching to the Co-operative Bank’s (www.co-operativebank.co.uk) current account has increased by 123% in the last year.

Co-op figures show that customers are most likely to switch from large high street banks. Significantly, the number of people switching from troubled bank RBS (www.rbs.co.uk) increased by 636%. In March 2008, 25 people switched from RBS to the Co-op, and in March 2009 the figure had risen to 265.

John Barker, head of current accounts at the Co-op, said there is a growing dissatisfaction with the major high street providers.

He said that customers are no longer willing to stay loyal to their existing bank if they have “concerns about the security or values of the institution” and suggested that they are now “looking to move their money to organisations they can trust.”

The Co-operative Bank is the only UK high street bank which has a customer-led ethical policy. It guarantees not to invest in any companies that operate in areas of concern to their customers – such as those involved in the extraction and production of fossil fuels and those involved in animal experimentation for cosmetic or household products.

Chris Eagle, commercial manager at CreditChoices.co.uk, said: “The way we choose financial products is changing and while rates and terms are still important, ethical and moral concerns are playing and increasingly important role.

“It’s easy to switch current accounts and the co-op has a great track record when it comes to ethical banking, so it’s not surprising many people are making the move.”

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