‘Making banks work harder for you'
Following its investigation into the retail banking market, the CMA published a report at the start of August 2016, entitled ‘Making banks work harder for you’. This detailed its proposals for a range of reforms designed to give control back to you, the consumer.
They concluded that the larger, established banks do not tend to have to compete to get your business as these household names tend to be more trusted than the new, upcoming banks, who find it hard to cut through the market and win your business. This has in turn meant that new innovations haven’t been a quick to the banking sector as other markets, and competition amongst banks is not as strong as it should be to get customers a better deal.
The report also found that current accounts tend to have complicated charging structures, and the actual cost to the customer depends on how they use the account. Most of us don’t understand these charges and so we can’t tell if we could get a better deal with another product or another bank. In addition, because there is no annual renewal or trigger point, we don’t feel the need to review our current account choice and just let them run on, even if we might be able to get a better deal by switching.