Media Coverage
Source: E-Finance & Payments Law & Policy
Media Coverage
11.15.14
Last month, the UK’s Competition and Markets Authority (CMA) announced it will move forward with a full investigation of competition in the retail banking market. The CMA’s investigative group will focus on customers’ ability to shop around and switch banks, institutional transparency and incentives to compete for customers, and a market share paradigm that it says creates barriers to entry.
The regulatory organization announced its intent to open an investigation in a July consultation that allowed for responses from those in the retail banking industry. The CMA says most respondents to the consultation support a full investigation, despite many banks’ contention that it is unnecessary.
“Although the CMA cites support for its investigation amongst a majority of those responding to the consultation, the banks had submitted proposals to satisfy the regulator without the need for a full market investigation including a comparison website and the establishment of standards to facilitate switching by small businesses to other lenders,” said Global Sourcing partner Tim Wright. “Cleary the CMA felt that more was needed.”