Banking overhaul, housing fears and consumer spending

It’s been two years in the making but the Competition and Markets Authority (CMA) has finally published its investigation into the retail banking sector.

The watchdog announced this morning that Britain’s High Street banks must launch a technological ‘revolution’ in an effort to promote better competition.

The CMA concluded that new phone-based apps should be brought in by early 2018. This will enable customers to share their data with banks and websites. The CMA also ordered further measures to encourage people to switch accounts. And banks will have to cap their monthly charges for unarranged overdrafts. ‘The reforms we have announced today will shake up retail banking for years to come, and ensure that both personal customers and small businesses get a better deal from their banks,’ said Alasdair Smith, chair of the CMA’s retail banking investigation. ‘Our reforms will increase innovation and competition in a sector whose performance is crucial for the UK economy.’ But the report drew a luke-warm response. Craig