Open Banking Revolution 'not enough', consumer groups say

Consumer groups and economists are not satisfied with the scope of change gripping the UK retail banking, a new report by the BBC said.

Following the announcement by the Competition and Markets Authority (CMA) that mobile apps could show consumers which banks have the best offers, as well as that banks will have to set monthly fees for unarranged overdrafts, consumer groups, and economists would love to see more.

"It is questionable whether these measures will be enough,” consumer group Which? told the BBC.

During BBC’s Today programme, Alasdair Smith, chair of the CMA's retail banking investigation said insensitive, or overly forceful regulation means risking the reduction of the availability of unarranged overdrafts.

"The reforms we have announced today will shake up retail banking for years to come, and ensure that both personal customers and small businesses get a better deal from their banks. Our reforms will increase innovation and competition in a sector whose performance is crucial for the UK economy."

"It is disappointing that the monthly charge cap is not actually a cap and banks will be allowed to continue to charge exorbitant fees for so-called unauthorised overdrafts, rather than protect those customers that have been identified as among the most vulnerable," Which?’s director of policy and campaigns, Alex Neill said.

Earlier this month, the CMA imposed a package of measures to make sure banks work harder to draw in and keep customers. It said that larger and older banks had it easier, while newer and smaller ones had to try extra hard.