Page 292 - Bank Case Studies

“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.