Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

UK banks facing break-up as full competition enquiry launched

UK banks facing break-up as full competition enquiry launched

UK banks are again facing potential break up after the Competition and Markets Authority recommended an investigation into the £8 billion current account and £2 billion business account markets.  

The recommendation followed a joint review of the small and medium sized enterprise market conducted with the Financial Conduct Authority and the CMA’s own work on current accounts.

‘The market studies have identified a number of common concerns, together with evidence that competition is not effectively serving the interests of SMEs or [current account] customers,’ said the CMA.

‘Barriers to entry and expansion for newer and smaller banks remain significant and the markets remain concentrated, particularly in Scotland and Northern Ireland.

‘There is very little movement in the market share of the largest banks (other than as a result of mergers and acquisitions)… Many customers see little difference between the largest banks in terms of the services they offer.’

Critically, the FCA added that the investigation will be extended to include the newly-created Payment Systems Regulator ‘given the links between payment systems and competition in retail banking’.

Ownership of the payments transmission system by the big incumbent banks has been widely recognised as a major barrier to new entrants.  

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
1 Comment Play CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

Do not miss the first two minutes of this film as Richard Buxton shares how he has been challenged by a client for owning shares in a certain company.

Play CEO Tapes: the huge opportunities for asset managers

CEO Tapes: the huge opportunities for asset managers

From tech disruption, retirement and poaching, the CEO discuss the opportunities for their businesses in this episode.

Play CEO Tapes: 'we're just a bunch of white dudes sitting here'

CEO Tapes: 'we're just a bunch of white dudes sitting here'

In our brand new series, eight CEOs discuss how the industry could do a better job for female fund managers.

Read More
Wealth Manager on Twitter