On 24 June, the BBA published a report entitled “Promoting competition in the UK banking industry”. The report sets out the views of both established banks and challengers with a variety of different business models and identifies ways to encourage new players to set up and grow. The study identifies the main problems facing new entrants to the sector and suggests policies to help address these issues.

What this means for you

The BBA urges ministers and regulators to make it easier for emerging banks to establish themselves and grow. More competitive markets would give customers a wider choice of products from a wider range of providers. Greater transparency will improve the efficiency of the market and lead to customers making informed decisions about whether to switch provider in order to get the best deal.