Irish consumers remain among the least likely in Europe to change their main bank accounts, with inertia and cumbersome processes continuing to stifle competition in the sector, according to recent findings by the Department of Finance and the Competition and Consumer Protection Commission (CCPC).
While former UK shadow chancellor Ed Balls once joked that “you’re more likely to be divorced than to change your bank account,” the sentiment still resonates in Ireland — not because it is statistically true, but because it feels accurate. A 2022 Department of Finance survey revealed that just 2–5% of Irish consumers had switched banks within the previous five years, while a striking 84% had never even considered doing so.
Even when Ulster Bank and KBC’s exit from the Irish market forced around one million customers to move accounts, fewer than half — just 44% — had opened new ones by the deadline, according to the CCPC. Despite a compelling reason to act, many still delayed or avoided switching altogether.
Behavioural economists attribute this reluctance to a combination of factors: resistance to change, fear of uncertainty, and the perception that switching is more hassle than it’s worth. For many, the potential savings of a few euros in fees simply don’t justify the time and stress involved in ensuring all payments, direct debits, and deposits transfer correctly.
The CCPC found that the biggest challenge for those attempting to switch was transferring payments between banks. Other complaints included too much paperwork, insufficient support, and lengthy processing times. Only 7% of consumers planning to switch said they would use the Central Bank’s official Switching Code, which guarantees completion within ten working days — a figure reflecting low awareness and trust in the system, particularly after delays during the Ulster and KBC transitions.
This inertia extends beyond current accounts. The Central Bank of Ireland has described it as “pervasive across financial markets,” noting similarly low mobility in mortgage and savings products. The country’s effectively duopolistic market has only reinforced the issue, with limited pressure on banks to innovate or reduce fees.
Digital-only challengers such as Revolut and N26 are helping reshape consumer habits. An Accenture report in 2024 found that 80% of Irish consumers now use more than one bank — one of the highest rates in Europe. Yet having multiple accounts is not the same as switching: most still keep their salary, mortgage, and bills tied to the same traditional bank they opened as students.
Experts argue that real change will require structural reform. The UK’s Current Account Switch Service, which automatically transfers all payments and redirects funds from old accounts, is seen as a model. Some Irish regulators have discussed introducing full account-number portability, allowing customers to keep their IBANs when switching — akin to retaining a mobile number — but outdated legacy systems remain a major obstacle.
For now, the emotional and logistical barriers to switching remain high. As long as changing banks feels like starting over, many Irish consumers will continue to stay loyal — or perhaps stuck — in the same financial relationship they began decades ago.
