In 2022, the bank switching service received 93,167 applications
11 January 2023 - 4 min Reading time
In 2022, the bank switching service received 93,167 applications. Customers who wish to switch their payment and savings accounts to another bank can use the Bankswitching service for a fast and easy transition without any disruption to payment instructions.
93,167 customers submitted applications through Bankswitching last year to switch banks. Nearly half of them (45%) used the bank switching service to close their old current account and transfer payments (such as direct debits) to the new current account. Approximately 20% of customers opted to transfer their payments to a new bank. In 12% of the applications, it involved closing the old current account without transferring payments. In 2021, the service received 107,462 applications.
Since the launch of the savings account bank switching service at the end of 2020, many customers have also taken advantage of it. In 2022, 22,028 customers chose to switch banks with the closure of their savings account, accounting for nearly a quarter (23%) of the total applications through Bankswitching.
Here's how the bank switch for current accounts works:
When switching a current account, the customer only needs to contact their new bank, fill out the application form, and return it. Afterward, the old and new banks collaborate to facilitate the switch. The customer also selects the switch date on the form (at least 10 working days after and no later than one month from the application date).
One significant advantage of this service is that the customer doesn't have to inform their creditors using direct debits or recurring payers of the new account number themselves; the banks handle this internally. Creditors and recurring payers receive a notification about the switch through the interbank service Bankswitching.
Payment recipients are asked to update the account number in their payments promptly: they are legally obligated to use the new account number from the switch date. They can also choose to receive notifications of a bank switch through a digital channel instead of the standard postal mail. Such a digital notification is convenient, automated, and quick. Moreover, the receiving party typically receives the digital notification around two days earlier than via postal mail.
Here's how the bank switch for savings accounts works:
Customers can also use the bank switching service for savings accounts. The customer requests the new bank to settle the savings account with the old bank through Bankswitching. The new bank will handle the settlement directly with the previous bank.
The participating banks currently offering the bank switching service for savings accounts include AXA Bank Belgium, Bank Van Breda & C°, Banque CPH, Belfius, Beobank, BNP Paribas Fortis, bpost bank, CBC Banque, Crelan, Europabank, Fintro, ING Belgium, KBC Bank, NewB, and vdk bank.
