While financial regulators in the UK have worked to introduce new regulations with the aim of boosting competition in the banking industry, the latest figures suggest a slow start to an industry overhaul.
According to reports, only 600,000 individuals switched their banks following the Current Account Switching Service’s introduction last September; that figure amounts to less than one percent of current banking customers.
Even those who switched banks merely switched from one industry leader to another.
The trend, reports say, means new market entrants are exercising extreme caution when predicting earnings and growth for the future, despite regulatory encouragement.
TBS, for example, is a spin-off of one of the Big Four banking giants. Another, Tesco, introduced new banking services as a way to market its supermarket chain. But both, reports say, are modest about future earnings predictions. Marks & Spencer and Virgin Money are among other underdogs looking to make their mark in the banking industry as the Competition and Markets Authority progresses with its market inquiry, also to facilitate new competition.
Full content: The Telegraph
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