TSB slams CMA’s attempts to ‘fix the industry’
Written by Anthony Strzalek
TSB has claimed that the Competition and Market Authority’s (CMA) three-year investigation into competition in retail banking has “backfired”, following a 14 per cent drop in the number of consumers switching bank accounts.
In the 12 months following the publication of the CMA’s final report, the number of people using the Current Account Switching Service (CASS) has fallen by 14 per cent. Those customers have missed out on a saving over £10 million by not switching banks – according to the CMA’s own research which found that a typical customer could save on average £70 a year.
In a statement on its website the bank said: “The CMA’s attempt to fix the industry and get consumers a better deal has failed and banking is still not working in the interest of consumers. The big banks continue to have a stranglehold on the market – they are taking customers for granted, trapping them on poor deals and making it impossible to switch.”
According to research from TSB, only 28 per cent of people have heard of CASS – a far cry from the 75 per cent customer awareness figure which CASS reports. Additionally, 41 per cent of people believe it’s difficult to make an informed choice when switching and 38 per cent of consumers don’t see any benefits in switching their bank account.
The research also highlighted that nearly seven in 10 people (68 per cent) think competition in the retail banking industry is worse or just the same compared with this time 12 months ago.
Paul Pester, CEO at TSB, said: “The CMA had a golden opportunity to fix the industry, by enabling consumers to make informed choices about their banking and ultimately putting them in control.
“But one year on and its attempt to get consumers a better deal has failed. People are still missing out on the benefits of switching – to the tune of another £10 million in the past 12 months.”