Barclays and Santander recorded the highest net losses in current account switches during the second quarter of the year, following significant outages that disrupted online banking services for thousands of customers. According to data from the current account switching service Pay.UK, over 22,000 users switched from Barclays between April and June 2025, with fewer than 4,000 joining, resulting in a net loss exceeding 18,000. Santander experienced a net loss of 23,015 during the same period.
These figures emerge after both banks suffered major outages earlier in the year. Barclays disclosed in a letter to the Treasury Committee that it anticipates compensating customers up to £7.5 million due to a three-day outage. The committee’s data revealed that UK customers faced nearly 33 days of unplanned technical and system outages over the past two years.
Santander also issued an apology following a service disruption in March, which left users unable to make payments via mobile and telephone banking. Lloyds, which experienced a net loss of over 9,000 customers, was affected by an internet blackout linked to an issue with Amazon’s web hosting services earlier this month.
A survey indicated that online and mobile app banking was the primary reason for switching accounts, cited by 44% of users. In response, the UK’s leading banks have intensified efforts to enhance their technology infrastructure. NatWest has partnered with OpenAI to “enhance customer experience,” while Lloyds has implemented a new customer AI knowledge hub to save “thousands of hours” in customer service.
Nationwide Building Society outperformed its competitors, gaining a net 54,347 customers. The Co-operative Bank, which achieved the second-highest net gains, attracted just over 9,000 new customers. Nationwide has enhanced its joining perks and maintained customer loyalty through various initiatives. In 2024, the mutual distributed £2.8 billion to customers via reward schemes offering better rates on savings and loans.
During the latest switching period, Nationwide issued a £50 million payment to over 12 million members following its acquisition of Virgin Money, a move that helped the mutual bank £2.3 billion and created the UK’s second-largest retail bank.
Despite Nationwide’s success, CEO Debbie Crosbie has faced criticism for a remuneration package nearing £7 billion, marking a 43% increase. This decision faced opposition as members were not given a vote. Her compensation is comparable to those of other prominent banking executives, such as NatWest’s Paul Thwaite (£7.8 million), Lloyds’ Charlie Nunn (£5.6 million), and Barclays’ Venkat (£10.5 million).
In contrast, Susan Allen of Yorkshire Building Society receives approximately £1.6 million, and Steve Hughes of Coventry Building Society earns £1.2 million. Nationwide is estimated to have over 16 million members, while Yorkshire Building Society and Coventry Building Society have around 3 million and 1.8 million members, respectively.
