- Almost a fifth (19%) of current account comparisons carried out through Gocompare.com are made using customers’ midata files*
- People who use midata are almost five times as likely to go on to switch as those who use standard ‘best buy’ tables*
- The top current account when midata is used is the seventh most popular in ‘best-buy’ tables
- The top current account in ‘best buy’ tables is the eighth most popular in midata-enabled comparisons
- Just 9% of people have switched their current account in the last 12 months**
Seven months since the launch of Gocompare.com’s unique midata current account comparison service, the comparison site can reveal which banks and building societies are attracting new customers by demonstrating real value when it comes to people’s day-to-day banking.
Launched in March 2015, Gocompare.com’s current account comparison service is the only tool that makes use of the Government-driven midata initiative. Midata enables people to use the data that banks or building societies hold about them to see exactly how much better off they could be by switching their current accounts.
A customer’s midata file will contain 12 months’ worth of their actual banking data, including all transactions made, interest earned, fees incurred and more, which Gocompare.com will then analyse to provide a pounds-and-pence value to help people determine which account is the most appropriate one for them to switch to.
The most popular current account for people who use their midata file to run a comparison is Halifax’s Reward Current Account, which is the seventh most selected account in a standard ‘best buy’ table. Nationwide’s FlexDirect Account is the top account in a ‘best buy’ table, but is only the eighth most popular when people make use of their midata file.
Table showing the six most popular current accounts when midata is used versus a standard ‘best buy’ table*
Midata-powered comparison (% of clicks)
‘Best buy’ table (% of clicks)
Halifax Reward Current Account (19%)
Nationwide BS FlexDirect Account (9%)
Yorkshire Bank Current Account Direct (17%)
TSB Classic Plus Account (8%)
TSB Classic Plus Account (10%)
Barclays Cash Card Account (7%)
Santander 123 Current Account (9%)
Clydesdale Bank Current Account Direct (5%)
Clydesdale Bank Current Account Direct (8%)
Bank of Scotland Cash Account (5%)
First Direct 1st Account (5%)
Yorkshire Bank Current Account Direct (5%)
Gocompare.com’s midata results also contrast with the Current Account Switching Service’s (CASS) latest switching figures, which show that Santander had the biggest net gain in new current account customers, with Halifax and Clydesdale Bank coming in second and third respectively.***
Matt Sanders, Gocompare.com’s banking spokesman, said: “Some of the main drivers of current account switching have been the proliferation of incentives, cashback rewards and in-credit interest earnings. These are understandably attractive, and may well be ideal for some people, but they don’t provide a clear picture of the pros and cons of the current account. Being given £100 for switching, for example, is all well and good, but if you’re going to rack up foreign usage fees and overdraft charges then that incentive could quickly be cancelled out.
“Midata-enabled comparisons lay bare the true benefits and drawbacks of current accounts by attributing a monetary value to each account. Using midata is the only way that people can determine exactly how a new account could benefit them, financially, before they switch.
“With midata it’s clear to see how an account will perform in year one, two, three, four and five, based on how a customer has used their current account over the last 12 months. So it’s not surprising that almost five times as many people who use midata, as opposed to just a ‘best buy’ table, go on to switch.
Matt continued: “At the moment, only customers of certain big banking providers**** can access their midata files, so we’d like to see more banks and building societies letting their customers make use of this data so that they can carry out meaningful current account comparisons.
“We believe that improved access to and use of midata will increase competition between providers and lead to the creation of more current accounts that are genuinely useful for consumers’ day-to-day banking requirements.”
For more information about midata, read Gocompare.com’s guide here
Gocompare.com looks at how midata could change personal banking forever.
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*Source: Gocompare.com’s current account switching data from 26 March to 28 October 2015. Click-throughs to accounts when people have used wither Gocompare.com’s midata-enabled service or its standard best-buy tables.
**On 17 March 2015, Bilendi conducted an online survey among 2,005 randomly selected British adults who are Maximiles UK panellists. The margin of error-which measures sampling variability-is +/- 2.2%. The results have been statistically weighted according to the most current education, age, gender and regional data to ensure samples representative of the entire adult population of United Kingdom. Discrepancies in or between totals are due to rounding.
***Source: BACS: http://www.bacs.co.uk/Bacs/DocumentLibrary/CASS_dashboard_-_published_21_October_15.pdf
****RBS, including: Natwest and Ulster Bank. Lloyds, including: Halifax and Bank of Scotland. Nationwide. Santander. HSBC, including: First Direct and M&S Bank. Barclays. Tesco Bank.