The FCA has this month published an update on its review of the retail banking sector which covers issues from personal current accounts to changes driven by developments in technology and innovation facilitated by Open Banking and PSD2. The report provides FCA views on the benefits banks have gained from providing personal current accounts and having access to an established branch network. 

Perhaps more importantly, for those senior managers involved in product design or even setting business model and strategy, the report provides useful insight into how the regulator carries out analysis of the fairness in which firms generate revenue. For example, in this report the FCA focuses on the high margins generated by banks through overdrafts in comparison to other credit products and the fact overdraft fees and charges generate 30% of personal current account income.