CMA to investigate SME banking
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.