Ahead of the CMA report on retail banking practices, here's a no-holds barred view of why the banks need a change of model.
Sorry, but it doesn’t take 18 months to work out that there is no such thing in banking as free, and that anyone who says there is, must being telling Gloucester Old Spot-sized porkies. A chum of mine who works in a major UK banking corporate says “when we get the latest account pricing from the people who do this stuff, we tell them it’s incomprehensible to consumers”. They smile and say: “correct”. So to porkies, you can also add subterfuge & deception. There’s another thing too. If accounts which the retail banks say cost them at least £120 per annum to operate, are being offered for free, there is de facto a cross subsidization from somewhere else. This is anti-competitive practice. Uh oh. So now to porkie pies, subterfuge & deception, you can add, potential illegality.