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."

To continue reading this article follow the link:

You are now departing from the regulatory site of Financial Services Scotland Limited. Neither Financial Services Scotland Limited or Personal Touch Financial Services Limited is responsible for the accuracy of the information contained within the linked site.