Page 37 - TSB G Case Study

“While increasing the number of competitors
has been a major focus of policy since 2008, a

second salient indicator has been the extent of
customer switching. Not only are customers

encouraged to change their provider if they are

not content with the service provided (OFT

2013), but actions taken by the regulator are

intended to make it easier to switch, thus

incentivising banks to improve.” (2)

A further dimension to this picture is that of the UK retail

branch network where density is significantly lower in the
UK than in other European countries:

Branches per million
inhabitants

2010

UK 199

Europe 463

Ref (2)

Yet the pressure to close branches in the UK is high and
the banks whilst their operations are also still

characterised by opacity, confusion, cross-subsidy and

cross-selling (including mis-selling). Competition

therefore, is still failing.