- Ensure consumers know what they are getting.
- Let consumers shop around freely.
- Enable consumers to vote with their feet and switch easily.
Paul Pester, Chief Executive Officer for TSB, says: “In the sectors that matter most to consumers a handful of big, established players have a stranglehold on their market. They are taking customers for granted, pushing up bills, trapping them on poor deals, bamboozling them with jargon and making it almost impossible to switch.
- Consumers don’t know how much they are paying for their “free” bank accounts or if they can get a better deal elsewhere – as banking must be the only industry that doesn’t tell customers how much they pay for the services they receive through a regular bill.
- Many people are punished for shopping around for a loan – with 61% of open loan providers making a hard mark on their credit file just for asking for a loan price or quote.
- The customers who would benefit most from switching are the least able to switch – overdraft customers are effectively locked into their current bank, because the switching service doesn’t switch overdrafts.
Paul Pester says: “Once consumers are empowered to vote with their feet, complacent businesses will need to up their game and become fit for competition. If businesses are forced to learn these lessons at home they will become more dynamic and better able to compete on a global platform. Ultimately that will mean a stronger UK economy that works for everyone.”
Notes to editors
TSB was built to bring more competition to UK banking and ultimately make banking better for all UK consumers. TSB only serves local customers and local businesses, to help fuel local economies, because communities thriving across Britain is a good thing for all of us.
We have a simple, straightforward and transparent banking model and make clear on our website how we operate and make money. We offer the products and services people tell us they want, with none of the funny stuff people normally associate with traditional banks.
Our five million customers appear to notice: TSB is Britain’s most recommended high street bank and was recently identified as one of the top 10 big companies to work for.
For further information about TSB Bank plc, please visit our website www.tsb.co.uk.