Banking customers can at times exhibit behaviour that is counterintuitive.

An unhappy customer may choose to stay with a bank despite a sense of poor service and low levels of satisfaction, meanwhile, a seemingly happy customer may choose to jump ship to a competing institution despite exhibiting a strong sense of satisfaction.

New UK research found this to be the case as one in two (52%) consumers with a relatively high level of trust in their provider, are still considering switching to another provider.

The findings stem from more than 14,000 UK banking customers in an annual CoreData Research UK/Moneywise study of customer service among Britain’s financial services companies.

Another conclusion that has come to light is that individuals can no longer be persuaded by a friend’s recommendation and instead a more substantial offer from another provider is the more likely driver to making them switch.

Regardless of the switching tendencies among some consumers, it’s interesting that many often don’t switch even despite repeated poor service.

Consumer inertia has been an issue within the UK financial services industry for some time now, and the recent credit crisis seems to have merely added to this stagnant environment.

Low consumer trust in the banking system one assumes would manifest in pushing individuals to evaluate their current service providers and if need be, switch.

Yet only around a tenth (13%) of current account holders is considering switching to another provider.

Whatever the reason to stay with one’s current provider, be it apathy, disillusionment or even low satisfaction, it is clear there is a limited willingness for most people to switch.

The economic theory relies on the assumption that people vote with their feet – Charles Tiebout was the main advocator of this theory through the Tiebout model. He talked of individuals moving – in this case switching providers – in search of maximum utility.

The Independent Banking Commission has been issuing directives for the retail banking market to make it easier for consumers to switch.

A finding from this study, that only a third (33%) of consumers would switch as a result of continued bad customer service, suggests the problem does not necessarily rest with the providers but also with consumers too.