The latest from the Black Country 

Black Country Chamber of Commerce Responds to the CMA Report on Retail Banking Market

CCW Johnathan Dudley 1Commenting on the Competition and Markets Authority's (CMA) provisional decision on remedies (PDR) in the retail banking market, Johnathan Dudley, Chair of the Alliance for the Black Country and Managing Partner and Head of Manufacturing Business at Crowe Clark Whitehill LLP, said:

“Businesses will welcome some of the CMA’s plans to boost competition in the retail banking market, notably measures that help firms compare the services available to them. The CMA’s endorsement of Business Banking Insight, which enables SMEs to compare the quality of service experienced by their peers, is important because it empowers business customers to make better choices by putting more information directly in their hands.

“Overall, however, the CMA remains in danger of passing up a golden opportunity to deliver more fundamental changes to the business finance market.

“Firms across the UK still tell us they believe that there are deep-rooted problems in SME finance. Many will feel that the CMA’s overall package of remedies only incrementally shifts the status quo. Many business people would have liked to see further remedies to promote competition, and a call for government to strengthen the British Business Bank to work directly with companies in the area of patient finance.

“The drive for more competition and choice in business finance must continue. Business wants both the CMA and the government to keep a close eye on the business finance market, and to act when strong firms say they cannot access the funds they need to grow. Businesses want a return to value added relationships with their banks, based on insight and trust: slow decisions based on credit scoring algorithms are often fallible and impersonal. A personal approach will overcome the bureaucracy regarding creating new accounts and reduce bank expenditure on complying with anti-money laundering legislation.

"SMEs will also want to see very clear safeguards around the sharing of data by finance providers, and how errors are being mitigated against. The CMA must ensure that these safeguards are in place for the long term."

Last modified on Thursday, 26 May 2016 09:00

News Categories

We use cookies to improve our website and your experience when using it. Cookies used for the essential operation of the site have already been set. To find out more about the cookies we use and how to delete them, see our Privacy Policy.

I accept cookies from this site

EU Cookie Directive Plugin Information