Digital shake-up for banks

9 August 2016
Digital shake-up for banks

The banks of the UK aren't exactly trusted by consumers, and with that, the Competition and Markets Authority (CMA) have brought about new measures to shake things up.

The CMA have said that banks need to improve their mobile services, as well as making it easier for people to switch.

Another big bit of news is that banks have been advised to introduce a cap on unarranged overdraft charges.

"We are breaking down the barriers which have made it too easy for established banks to hold on to their customers. Our reforms will increase innovation and competition in a sector whose performance is crucial to the UK economy," said Alisdair Smith, chairman of the CMA's retail banking investigation.

The idea is that customers will have increased control over their funds, and should people have more than one bank, it should be easier for them to manage multiple accounts through a single app.

Of course, with more transparency, there should be more information available for consumers, so they can compare products, and get a better deal for themselves.

Nice idea. However, you get the impression that most people look at their bank accounts as little more than somewhere to store their money, and as such, can't be bothered messing around looking for interest rates and looking into charges.

While that may not be advisable, there's a chance these changes won't really influence the majority of banking customers.

Banks will also need to regularly prompt customers, by sending them alerts about things like local branch closures.

TOPICS:   Banking

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