Younger generations ‘more sceptical of switching bank accounts’

Revealed: Younger generations more sceptical of switching bank accounts than older generations

• Nearly 1 in 5 (18%) members of gen z and 13% of millenials said switching bank accounts is too time-consuming
• 1 in 6 (16%) members of gen z said it is too stressful to switch bank accounts
• Over half (54%) of the silent generation and nearly half (46%) of baby boomers said they did not switch bank accounts because they are loyal to their current banking provider.

Only 14% of UK adults have taken advantage of bank switching deals before, according to new research from personal finance comparison site finder.com. The study explored the reasons why so many Brits are not switching, and revealed that younger generations are more sceptical about the ease of switching accounts, whilst older generations are less likely to switch due loyalty to their current banking provider.
 

Younger generations think switching bank accounts is too time-consuming

 
Switching bank accounts is too time-consuming for younger generations. Around 18% of gen z (18-26) and 13% of millennials (27-42) said switching bank accounts takes up too much time. Around 12% of gen x (43-58) also finds switching bank accounts too time-consuming. However, baby boomers (59-77) and the silent generations (78+) find time less of a concern, with 7% of the former and 4% of the latter citing it as a reason for not switching bank accounts.

The data seems to indicate that younger generations value their time more, perhaps due to the fact that they are more likely to be in full-time employment and caring for children, than baby boomers and members of the silent generation.
 

Stress and fear is holding back younger generations

 
Gen z and millennials have more concerns than older generations when it comes to fear and stress around switching bank accounts. 1 in 6 (16%) members of gen z said that it is too stressful to switch bank accounts, closely followed by 1 in 10 millennials (11%). Meanwhile, older generations are less stressed, with 9% of gen x and 7% of baby boomers giving this as a reason for not using switching deals.

Younger generations are also more sceptical when it comes to losing direct debits and standing orders. Around 12% of gen z cited this fear as a reason not to switch bank accounts, closely followed by 9% of millennials. Meanwhile only 4% of gen x and 2% of baby boomers cited fear of losing direct debits and standing orders as a reason to not switch bank accounts.

Older generations are more loyal to their banking provider

 
Across all generations, loyalty to their banking provider was the main reason (34%) for people not switching bank accounts despite switching offers. However, older generations were found to be consistently more loyal than their younger counterparts. Over half (54%) of the silent generation and nearly half (46%) of baby boomers said they did not switch bank accounts, because they are loyal to their current banking provider.

Meanwhile, just 36% of gen x said they were too loyal to their current banking provider to switch. Loyalty decreases again for millennials with only 1 in 4 (26%) citing it as a reason not to switch, followed by gen z at less than 1 in 5 (19%).

Research methodology:
 
Finder commissioned Censuswide in October 2023 to carry out a nationally representative survey of adults aged 18+. A total of 1,996 people were questioned throughout Great Britain, with representative quotas for gender, age and region.