Page 12 - TSB G Case Study
P. 12
No
= No Innovation
Competition
Also
No
No
= Investment in
Competition
Technology
A simple argument criticising the UK banking system is
that where there is no competition there is no innovation
and no investment in technology.
In the US where there is greater competition the result
has been greater fostering of innovation by the banks.
Moreover, investment in the UK has experienced a litany
of problems associated with FinTS:
“9 June 2012
The worst banking meltdown to date hit millions of customers of RBS,
NatWest and Ulster Bank, locking them out of their accounts for days,
and in the case of Ulster Bank customers, for weeks.
The meltdown hit not only customers of the three brands owned by
RBS Group, but also people who were expecting salary payments from
businesses that held accounts with the bank and other transfers
between banks. RBS was later fined £56m by regulators, but the
episode is understood to have cost the bank more than £100m. (18)
