We’re told that inertia is the reason why banks get away with all the overcharging they’ve admitted in the past. And that the inertia can in a lot of case be put down to the perceived difficulty in switching accounts. Basically, though customers are told frequently how their banks are stealing money from them, they continue to keep their money with them.
Not for those reasons, but I’ve decided that I want to change my bank account and my mortgage. I’m currently with Ulster Bank for both but have discovered better bargains elsewhere. Interestingly, Ulster Bank are offering €1000 to customers to move their mortgage from other banks to them, so I wrote a nice polite letter to them asking that maybe they could do something for me to keep my business as a customer, rather than them having to spend €1000 on trying to get a new customer to replace me if I left. And their response – No Response. My letter was ignored.
Having worked for another very customer focused business a couple of years ago, it was always said that it was cheaper to keep customers than to have to go get new ones. Obviously Ulster Bank are not of that opinion. They’re spending thousands on advertising their €1000 offer to get new customers, but will do nothing to keep their existing ones.
I’m not even going to bother now seeing if they’ll do anything for me on my current account. They’re currently offering €150 to customers of other banks to come to Ulster Bank. I’m presuming that if they’re not going to do anything to try to keep my mortgage business where they’re making a fortune, they’re unlikely to do anything to try to keep the income they’re making from my current account.
So, I’m moving. I’ve written to them to tell them I’m moving, and why. I’ve also told them I’m going to write about this here, so we’ll see what happens. More details later on the switching experiences.