Summary
U.K. retail banks are experiencing mounting pressure to improve competitiveness and become more customer-focused. In the last 15 years alone, they have been subject to multiple competition investigations as the regulators spend vast sums trying to make banks more customer-friendly.
Yet despite the regulators’ efforts, there is still a crisis of public confidence in the UK retail banking sector. Recent initiatives on current account switching and pricing transparency tried to improve customer rights and create a more dynamic and competitive environment. But the average banking customer continues to feel disengaged and greets these changes with marked apathy.
With even more regulatory changes on the way, political pressure in the run-up to the May 2015 General Election, and a continuous competitive threat, there’s never been a more pressing time for banks to take action.
In this Executive Insights, L.E.K. Partners Peter Ward and Ashish Khanna, leaders of L.E.K.’s Financial Services practice in London, identify three key areas that the banks urgently need to address in order to win back the public’s trust and finally get the regulator off their backs.
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