Watchdog's banking tech reform 'not enough'

August 11, 2016 | 6years | NEWS AND INTEREST

A shake-up in UK retail banking has been criticised by consumer groups and economists as not going far enough.


The Competition and Markets Authority (CMA) concluded that new phone-based apps could show customers which banks may offer the best account.

Banks will also have to set maximum monthly fees for unarranged overdrafts.

But consumer group Which? said: "It is questionable whether these measures will be enough."

The CMA decided against a cross-industry cap, leaving individual banks to set their own charges.

Alasdair Smith, chair of the CMA's retail banking investigation, told the Today programme: "Heavy-handed regulation would run the risk of reducing the availability of unarranged overdrafts."

Alex Neill, director of policy and campaigns at Which?, said: "It is disappointing that the monthly charge cap is not actually a cap and banks will be allowed to continue to charge exorbitant fees for so-called unauthorised overdrafts, rather than protect those customers that have been identified as among the most vulnerable."

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