Are you satisfied with your bank or could it make changes to improve the service you get? We think banks have a lot of work to do, so we’re calling on the regulator to take action…
Most people’s day-to-day relationship with their bank centres around their current account. At least 94% of us have one, and if you’re like me, you’re still with the same bank you joined when you went to university.
Despite that free railcard offer running out over a decade ago, I’ve never bothered to switch – and I’m not alone. There’s been a small increase in people who are willing and able to use the seven day switching service, yet over 70% of accounts are still held by the four largest high street players.
Banks should compete better for our business
Last year, the Competition and Markets Authority (CMA) agreed that the market wasn’t working well enough for consumers, and opened a major investigation. Today, we’re calling on the CMA to make sure it goes beyond fixing the basics and comes up with new solutions that will force banks to sit up and take action.
As our research has always indicated, solutions that make the costs of accounts clearer and more comparable should be a no-brainer. But these changes alone won’t be enough to transform things. That’s because so many people are unable or unwilling to switch regardless, meaning the banks have little incentive to change their ways.
Big banking changes we’d like from the CMA
We want to see reforms that will deliver genuinely better banking services for everyone. But what does this actually mean?
Well, what if the CMA considered increasing compensation levels for people who experience terrible customer service, or naming and shaming the worst providers? Or how about banks being required to proactively help customers who regularly slip into their unauthorised overdraft, rather than just hit them with high charges?
It’s clear that the CMA has a big job on its hands, but this is the perfect opportunity to propose remedies that would finally shake up this sector and make banks respond better to the needs of their customers.
What do you think the CMA should recommend to get banks to raise their game? How could things improve to make your everyday banking experiences better?