Are we really about to see the end of free banking?
The IndependentIt’s fair to ask what on earth the boss of Britain’s financial watchdog was thinking when he mooted the end of free banking. Nikhil Rathi, the chief executive of the Financial Conduct Authority, opened that pandora’s box in a recent speech at a City conference hosted by Morgan Stanley, an investment bank. Here’s what he said: “We have always been clear that if business models need to change in response to competition and a changing market, we would not stand in the way. Former pensions minister Baroness Altman, for example, said: “On the one hand it says it wants to support consumers, while on the other it is showing a green flag to banks to rake in extra cash from already poorly served consumers.” “We’ve heard a lot of curious statements from the FCA recently,” said a banker of my acquaintance who was quick to answer when I asked if their employer would be taking up Rathi on his offer: “No. But for the boss of the FCA to then posit removing the free banking services UK consumers value extremely highly as the apparent price for correcting sharp practice in other areas and reforming and cleaning up makrets that aren’t working for the consumer?
History of this topic
British banks are propped up by the public purse, so they should be made to serve the public interest
The Independent
Don't be fooled, free banking is a myth – and the banks are making billions from your interest
The Independent
Current accounts: How Britain's banks 'are ripping us off'
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