Fewer than half of Ulster and KBC customers have switched accounts

Ulster Bank has been contacting customers and plans to finish the process of closing all customer accounts in the first quarter of 2023. 

Fewer than half of Ulster Bank and KBC customers have opened accounts with different banks, while one in five has not taken any action at all to switch, despite the impending departure of both from the Irish market.

Consumers have been warned that switching over all their direct debits will be among the biggest challenges they face when trying to open a new account, with a significant risk of missing essential payments such as a mortgage, rent, or utilities if this work isn’t done on time.

KBC began writing to customers on June 1 informing them they had six months to close their accounts. Ulster Bank has also been contacting customers and plans to finish the process of closing all customer accounts in the first quarter of 2023.

However, customers have reported difficulties in getting appointments for switching and difficulty in doing it online, even as the banks have pledged to take further action to accommodate customers switching in the coming months.

According to analysis from the Competition and Consumer Protection Commission (CCPC), published on Tuesday, less than half (44%) of customers of these banks have so far opened a new account.

While four in five said they plan to switch to a new account with a different bank, 20% said they had not yet done anything about switching their current account.

A further one in six (15%) said they had started to compare provider options but had yet to decide on who to move to.

Urged to take action

Most people believed it would take two months or less to switch (65%) in the survey, but the watchdog is urging customers to take action now.

“The CCPC is asking consumers who now need to switch current account providers to take action sooner rather than later to avoid potential delays or being left without banking services,” it said.

“The CCPC is also reminding consumers that delaying the process of switching to the very last minute could lead to negative consequences, such as regular payment disruptions, loan repayment arrears, security risks, and a negative personal credit rating.”