UK banks will have to inform customers about the number of operational and security incidents they have been exposed to under new rules designed to improve competition in the retail banking market. The requirements, mandated by the FCA, will also force banks to publish information on helplines, how long it takes to open a current account and replace a missing credit or debit card and the level of complaints made against the firm.
Christopher Woolard, FCA executive director of strategy and competition, says: “We want to see current account providers competing hard for their customers’ business by offering better service, alongside competition on interest and charges. These rules will help people see how their bank compares to others so they can choose an account that suits their needs.”
Set for introduction in August 2018, the new reporting obligations complement a requirement by competition watchdogs for the largest banks to publish customer survey results comparing levels of customer satisfaction.
The rules will throw a spotlight on the legacy tech issues inflicting major banking incumbents in comparison to fleeter-footed new competitors.
Eric Leenders, managing director of personal finance at UK Finance comments: “Like the FCA, we want to see effective competition so these steps are a welcome development. Making it easier for consumers and businesses to compare the quality of service offered by different current account providers is a great way to encourage customers to shop around.”