Institute reaction to the Competition & Marketing Authority's recommendations on retail banking

9th Aug 2016

Responding to the recommendations of the Competition and Markets Authority’s investigation into the retail banking market, Jo Causon, Chief Executive of The Institute of Customer Service, said:

“For too long the retail banking sector has rested on its laurels, safe in the knowledge that customers are unlikely to switch their accounts. Aside from public services, banking has the highest percentage of customers who have used the same service for more than 20 years, meaning the sector suffers from weak competitive pressures.

“Consumers stand to benefit from the proposals but banks should also see the CMA’s recommendations as an opportunity. As switching becomes easier, those that make use of technology to champion excellent customer service across multiple channels will be well placed to reap the rewards by taking market share from competitors.

“There is, however, some cause for caution. Today’s consumers are not fazed by digital solutions, but in the wake of high profile data breaches they are becoming fiercely protective of their personal information. Any online switching strategy will therefore need to balance the appetite for convenience and accessibility, with ensuring consumers can share personal information with confidence, and are assured of its long term security.”

Ends

Notes to editors
For further information please contact: 

Mike Petrook and Helen Glover
E: [email protected] and [email protected]  
T: 020 7260 2631 (Mike) or 020 7260 2698 (Helen)

About The Institute of Customer Service
The Institute of Customer Service is the professional body for customer service delivering tangible benefit to organisations and individuals so that our customers can improve their customers’ experience and their own business performance.  The Institute is a membership body with a community of over 500 organisational members – from the private, public and third sectors – and over 4,000 individual memberships.  For more information about the Institute of Customer Service go to www.instituteofcustomerservice.com.

Share this