Do better by personal account customers or you'll be forced - that was the message behind a speech given by head of the Office of Fair Trading (OFT).
John Fingleton said competition in the banking system has not functioned well for too long, despite a string of investigations into personal banking, and that competition needed to become more focused on the needs of the customers.
He pointed out that even where interventions by competition authorities and the government have had positive effects, "progress has been too slow and incremental, and fundamental concerns remain about the competitive structure and performance of these markets."
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
If banks ingore his warning, a "more radical approach" may have to be adopted, he cautioned.
The speech also pointed out that all inquiries had concluded that there is a lack of competition in the sector, which makes it difficult for customers to get their heads around the charging structure.
NR
-
8 of the best houses for sale with annexesThe best houses with annexes – from a period property in the Lake District to a 13th-century house with a two-bedroom annexe in Saltwood, Kent
-
Zelenskyy moves to appease Donald Trump – what happens now?Ukraine’s president Volodymyr Zelenskyy is conceding ground to secure the least-worst deal possible, says Emily Hohler
