Which? uses cookies to improve our sites and by continuing you agree to our cookies policy

Campaigns | Better banks

Hero   better banks media image 430130


CMA issues proposals to shake up banking

9th August

After a near two-year-long review into the banking sector, the Competition and Markets Authority (CMA) has today announced its proposals to shake up the banking sector.

The CMA concluded that the major banks do not need to compete for customers, and with six in ten consumers having remained with the same bank for more than a decade, the main focus from the regulator has been to encourage bank switching.

Shake up in banking

A new open banking standard is the main technological solution that the CMA is pushing from today’s package. This will allow new services that are tailored to a customer's individual needs - for example using a mobile phone app to manage accounts held with a different provider, and compare better deals based on their banking usage.

The regulator believes that this will encourage more people to switch, and is requiring banks to deliver it by 2018, however concerns have been expressed about potential security issues.

On unarranged overdraft charges, the regulator has proposed that banks should alert customers whenever they are about to run into their overdraft and give them 'grace periods' to help them avoid charges, but it has not gone as far as to impose a controlled cap on charges, despite our research revealing that some overdrafts can cost as much as a payday loan.

Our Director of Policy and Campaigns, Alex Neill, said:

‘The steps outlined today, to provide customers with better information and an improved switching experience, are welcome. However it is questionable whether these measures will be enough, not only to increase competition but also to ensure banks deliver a better service for their customers.

‘It is disappointing that the monthly charge cap is not actually a cap and banks will be allowed to continue to charge exorbitant fees for so called unauthorised overdrafts, rather than protect those customers that have been identified as among the most vulnerable.’

Much more can be done

With over 50,000 supporters backing our call for Better Banks, some of today’s proposals to shake up banking will be welcome news. However, it’s clear that more needs to be done to deliver much needed improvements in banking for all consumers.

We expect the Financial Conduct Authority to now press ahead and test these proposed remedies. But with unarranged overdraft charges at such crippling high rates we’re calling for the regulator to review overdraft charges and crackdown on these punitive fees.

Back our call for genuine better banking by signing our petition today.


Bank staff letting customers down with poor advice

Our latest undercover investigation has found that bank staff have shockingly poor knowledge of how Isas work.

Big banks respond to our campaign

Two of the big banks have come out in support of our Better Banks campaign, which calls on the industry to deliver better everyday banking for their customers.


Join our call for better banks

13th February
8th September 08 Sep

Seven day deadline to switch bank accounts


Bank staff reveal the stark reality

We’ve released our survey results of more than 500 front-line bank staff, revealing that pressure to sell still pervades the culture in the big five banks.
Take action

Sign our petition to deliver better banking

petition signatures
Help us reach 100,000

Recent Supporters

  • caroline about 5 hours ago
  • Patrick.J. about 6 hours ago
  • Denis about 9 hours ago
  • John about 14 hours ago
  • Eve about 15 hours ago