In a new paper released today Driving Banking Reform: How Account Portability is Key to Achieving Consumer Focus, Andrea Leadsom MP argues the key to reforming Britain’s banking system is empowering consumers to drive competition.
For too long barriers to entry have been overlooked in the banking sector. Some of the key barriers include capital and liquidity requirements, IT and payments systems and the nature of the personal current account market itself, for example the practice of ‘free while in credit’ accounts. There are positive reform steps being taken to reform banking but these may push up the cost of banking for consumers. This makes the need to ensure that consumers get a fair deal even more pressing.
To achieve our goal of rebalancing Britain’s economy, a truly Conservative vision for the financing of a long term recovery must be to turn our retail and commercial banking sector from an over concentrated oligopoly into a consumer focused and competitive service business.
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