Moneysupermarket.com’s head of banking comments on the report released by the Independent Commission on Banking (ICB):
“The ICB’s report has been long awaited and it comes as no real surprise that the focus of the findings is around the ring-fencing of retail banking operations from their investment arms. This would make it easier and less costly to address any issues with those banks that get into financial difficulty.
“It is good to see the report calling for the promotion of competition and improved transparency within banking sector. The consolidation in the industry following the financial meltdown had reduced the options for UK consumers, so any measures to encourage consumers to be able to switch current accounts are welcome. The main five banks dominate the personal current account market and this will remain the case unless some of the barriers to switching accounts are removed. Adopting an improved switching system for personal and SME current accounts, with accounts transferred within seven working days and regular payments automatically redirected to the customer’s new account, will help eliminate some of the horror stories witnessed with account switching in the UK. Knowing that all their bills will be paid during the switching process will help consumers switch with confidence.
“We welcome any changes that give consumers the confidence and means by which they can find the best deals to suit their financial needs. The main concern of these recommendations is the additional costs on the banking sector, which could either be passed on to customers in some shape or form, or see a number of banking operations moving their head offices away from the UK.”
Source : Moneysupermarket.com
