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CMA to investigate SME banking

Posted at November 6, 2014 | Categories : News

The Competition and Markets Authority (CMA) has announced its decision to launch an in-depth market investigation into the SME retail banking and personal current account sectors.

The watchdog says it continues to have concerns about the effectiveness of competition in these sectors including:

  • low levels of customers shopping around and switching
  • limited transparency, and difficulties for customers in making comparisons between banks, particularly for complex overdraft charges on personal current accounts
  • continuing barriers to entry and expansion into the sector, limiting the ability of smaller and newer providers to develop their businesses
  • very little movement over time in the market shares of the 4 largest banks, which provide over three-quarters of personal and business current accounts

A timetable for the various stages of the investigation will be published shortly.