Increasing customer choice
By Mark Sismey-Durrant, chief executive officer at Hampshire Trust Bank | 16:57 Wednesday 24th January 2018
The new year heralds a new era in the financial services industry with the introduction of Open Banking.
While some concerns have been aired around this innovation and how it will work in terms of the new General Data Protection Regulation and cyber security, we believe that the focus on customer choice in banking that this ushers in will increase as the year progresses, a move we welcome.
Following its retail banking investigation, the Competition and Markets Authority (CMA) concluded that older and larger banks do not have to compete hard enough for customers' business.
Nine of the bigger banks adopted new Open Banking rules on 13th January, enabling customers to give consent to allow businesses – other than their bank – to access their current account information.
In addition, after a year of discussion and debate, international regulators have finally announced the finalised Basel III banking reforms, which intend to boost banking competition by levelling the playing field in terms of the capital requirements banks must hold, which will hopefully make it easier for smaller banks to compete in certain areas of lending when they come into effect from 2022.
These reforms will help increase innovation and competition in the banking sector. While the results of these changes will emerge over time, we are already factoring in the implications of these changes into our plans for products and services at Hampshire Trust Bank.
We believe it is vital for people to have easy access to a wider range of financial services, tailored more closely to their circumstances and requirements. At Hampshire Trust Bank, we pride ourselves on employing experts in the SME sectors in which we operate.
The CMA identified that “there is a particular problem in SME banking where many SMEs open their business current accounts at the same bank where they have their personal current accounts, then stick with that bank for their business loans”.
Our recent SME Growth Watch research found that SMEs in the top 10 cities in the UK are forecast to contribute £241bn to the economy by 2025, a 19% increase from the £202bn contributed in 2016. In order for SMEs to achieve their growth potential, they need more support, including greater financial support from a wider range of providers.
We believe that increasing customer choice in banking is key to helping UK SMEs to grow, in turn helping to drive the economy forward, which is good news all round.
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Monese urges holidaymakers to shop around for their bank to save money abroad
Brits travelling abroad have been encouraged to save money by shopping around for bank accounts...
Tandem introduces healthy balance feature
Digital bank Tandem has announced the launch of a new healthy balance notification feature on its banking app...
The Access Bank UK joins Bacs
The Access Bank UK has been announced as the latest brand to join Bacs Payment Schemes Limited (Bacs)...
Nearly 75,000 SMEs supported through BBB programmes
The British Business Bank (BBB) has reported that the total stock of finance provided through its programmes in the last financial year rose by 33% to £12.25bn...
Close Brothers’ banking division reports 6.6% loan book growth
Close Brothers Group PLC has revealed that its banking division has seen a 6.6% growth in its loan book in the 11 months to 30th June 2018...
Leeds introduces two-year fixed rate BTL product
Leeds Building Society has launched a two-year fixed rate buy-to-let (BTL) mortgage product as part of a wider refresh of its 70% LTV BTL range...
Just 20% of Brits would opt for a challenger bank
Only 20% of UK residents would opt for a challenger bank if they were opening a new account today, according to research from Equifax...
Santander to form digital investment banking team
Banco Santander has announced that a new digital investment banking team will be formed within Santander Corporate & Investment Banking...
Metro Bank introduces developer portal
Metro Bank has launched a new developer portal for FCA-registered third parties wishing to build services on top of its APIs...
Wesleyan Bank appoints new head
Wesleyan Bank has appointed David Brownbill (pictured above) as its new head of indirect sales...
Arbuthnot announces profit surge
Arbuthnot Banking Group has reported a half-yearly profit before tax of £3.5m for the six months to 30th June 2018, up from the £2.5m recorded during the same period last year...