We’re all familiar with the well-worn out statistics (first published in 2008, from a quick Google?!) that Britons are more likely to get divorced than switch banks. Unhappy but apathetic – possibly because a lack of differentiated service at the time, or indeed interest rates, meant that it didn’t matter very much what colour logo you were banking with, the functional result was broadly the same. Unhappy, but unwilling to do much about it – like a lazy customer in a long queue. Not ideal, but.. meh.
Along came the Current Account Switch Service in 2013, allowing anyone with a UK account to switch providers quickly and easily – and for free. This is only relevant if there is something preferable to switch to of course. Even that is not enough – it must require almost no effort. In a swirl of ‘life admin’ tasks, researching and comparing different options, hauling information across portals, and dealing with dreary customer service teams and intolerable hold music is less than inspiring during an already snatched lunch break.
But the switch bug is catching. From banks, to energy providers, to insurance to mortgages, new technologies are making it increasingly easy to swipe and tap our way to better deals.
It’s mortgages that have been in the spotlight in the last few days. The FCA’s long awaited interim report into the mortgage market estimated that 10,000 of the 8m mortgage borrowers cannot switch products, but would benefit from doing do. According to the study, an estimated 800,000 borrowers could save £1,000 with simpler mortgage switches.
Hot on the heels of those headlines was Trussle’s Series B funding announcement. The company aims to make it efficient and convenient for consumers to find the right mortgage in the first place, as well as continuously monitoring the market to make sure you’re always on the right deal.
Taking one, two, or five minutes to see if I could save £1,000? That’s some quick lunch break admin I can get on board with.
Thousands of mortgage prisoners 'need help switching'