Competition for customers in the financial sector is more intense than ever. Banks that make it difficult for new customers to switch accounts smoothly risk more than just disappointed prospects: without a professional account switching service, banks may lose potential customers before a contract is even signed, delay the onboarding process, and damage their reputation due to negative experiences. Especially in times where simplicity and speed are key, offering an account switching service is not a nice-to-have – it’s an essential.
Bank customers can be as cautious as deer in the woods. As highlighted in an article from Der Bank Blog, a study by the digital association Bitkom found that 63 per cent of bank customers fear a banking or financial crisis. In response, 67 per cent have spread their money across multiple accounts or plan to do so, in order to be better prepared in case of crisis. And 66 per cent would immediately withdraw or transfer their money to another bank if rumours of trouble at their current bank surfaced.
However, switching accounts remains a significant hurdle for many bank customers – and a missed opportunity for banks. A digital account switching service not only simplifies the process, it also strengthens customer loyalty and positions banks to better compete in the future. So why wait? Here are 10 compelling reasons to implement such a service:
1. Seamless Onboarding Process
Sometimes it’s love at first sight – or, to put it more neutrally, an attraction to competitive conditions that prompts customers to switch to a new bank. But if the “getting to know you” phase – that is, the onboarding process – with the new provider proves complicated and time-consuming, the (business) relationship is unlikely to last. A digital current account switching service helps banks preserve that positive first impression: it saves newly acquired customers time and stress by eliminating the need to notify each payment partner individually. The switch is secure and comprehensive, enabling immediate use of the new account.
Everything can be done conveniently from home in a fully digital process, avoiding failed direct debits and payment reminders. In addition, customers receive a clear overview of their existing payments and experience their new bank as competent and customer-focused right from the start.
2. Increased Conversion Rates for New Customers
After the courting and getting-to-know-you phase comes the everyday routine – and it’s no different in the financial world. Many banks invest heavily in marketing to promote their current account offers. But the crucial moment comes later: when potential customers realise how tedious it would be to manually update all standing orders and notify payment partners, many abandon the idea of switching altogether.
An integrated account switching service removes this barrier. It ensures that prospects don’t drop out at the final step but instead complete the account opening process and become active customers. This turns expensive leads into real business.
3. Strengthening Competitive Advantage
Other banks, too, have attractive offers and services – customers know this well. In an increasingly digital market environment, they have come to expect services that are fast, simple, and seamless. As a result, banks are now judged not only by their rates and products but also by the ease of their digital processes. A modern account switching service is no longer a luxury – it’s a key competitive differentiator.
Banks that fail to offer such a service risk being perceived as outdated or customer-unfriendly. In contrast, an efficient switching process presents an opportunity to stand out from competitors and attract new customers who value simplicity and convenience. Introducing such a service not only improves customer retention but also strengthens the bank’s long-term market position.
4. Enhancing the Customer Experience
Switching accounts is a lot like starting a new relationship: in the beginning, there’s uncertainty and the question of whether everything will go smoothly. For many customers, changing banks is a delicate moment filled with doubts and concerns – will payments be updated on time, and will the process be trouble-free?
A professional account switching service alleviates these concerns by offering transparency and ease of use. It creates trust and reassurance. Customers feel supported and valued when their new bank actively ensures a smooth transition. This positive experience builds emotional loyalty and increases the likelihood that customers will remain satisfied over the long term and recommend the bank to others.
5. Faster Activation of the New Account
An account switching service ensures that all payment partners, standing orders, salary deposits and direct debits are quickly and completely transferred to the new account. This allows customers to use their new account fully and immediately after opening – without any disruptions to incoming or outgoing payments.
This swift activation not only boosts customer satisfaction but also has a direct impact on the bank’s revenue. The sooner the account becomes active in everyday banking, the sooner it begins to generate income through transaction fees and cross-selling opportunities.
6. A Positive Brand Image
A modern account switching service is a clear sign that a bank is actively embracing digital transformation and putting its customers first. A smooth and convenient switching process is associated with innovation, reliability and ease of use. This positive perception strengthens customer trust and clearly distinguishes the bank from competitors who fail to offer comparable services – or offer them inadequately.
In this way, an account switching service directly contributes to brand building and supports a strong position in the market.
7. Reduced Operational Effort
An automated account switching service significantly lowers the need for manual intervention, as many steps are handled digitally without requiring staff involvement. This means fewer customer queries, fewer sources of error, and less time spent by service centre teams on routine switching tasks.
As a result, resources can be saved and reallocated more efficiently – for example, to support existing customers or to develop new offerings. Overall, it contributes to cost optimisation while also relieving pressure on employees.
8. Efficient Compliance with Regulatory Requirements
Various legal requirements play a key role in the account switching process – particularly the German Payment Accounts Act (ZKG), which has been in effect since 2016. It obliges banks to actively and efficiently support customers in switching their current accounts. This includes timely and complete transfer of all payment partners, standing orders, and direct debits, as well as providing clear information about the switching process.
Additionally, data protection regulations (such as the GDPR) must be observed to ensure the secure handling of sensitive customer data during the switch. Requirements for secure communication and authentication – for example, under PSD2 – must also be met.
A digital account switching service enables banks to fulfil these complex requirements in an automated, transparent, and audit-proof way. This minimises risk, reduces manual effort, and offers customers a simple, legally compliant, and trustworthy solution. In this way, compliance becomes not a burden, but a competitive advantage.
9. Positive Impact on Sustainability Goals
A digital account switching service helps banks advance their sustainability goals by replacing paper-based processes with automated, digital workflows. This reduces paper consumption, minimises the need to send physical documents, and lowers the CO₂ footprint associated with manual handling and transport.
At the same time, a simple, digital switching process increases customer acceptance of sustainable banking solutions and highlights the bank’s commitment to environmental responsibility and modern, resource-efficient services.
10. Unlocking Cross-Selling Potential
A smooth account switching experience leaves a strong positive impression on new customers and lays the foundation for a trusting relationship. Satisfied customers are far more likely to explore additional products and services – whether that’s credit cards, savings accounts, insurance, or digital banking tools.
The seamless switching journey increases customer retention and can be strategically leveraged to unlock cross-selling opportunities and maximise long-term customer value.
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