Richard Theo, CEO and co-founder at Wealthify had this to say;
On the top line reforms:
Fees, overdrafts and switching all desperately needed reforming, but we also need a complete overhaul of how banks and other financial providers enable people to grow their money. With record low interest rates and another story out today from Shelter saying 1 in 3 families do not even have enough savings to cover one month’s rent, these are dire times. Britain’s financial future cannot be safeguarded if people don’t invest their savings. We desperately need simple, easy-to-access services that give people a chance to grow their money and put money aside not only for rent, but for graduations, weddings and house deposits.
Disruption is already occurring all over financial services. Banks are looking to technology to better improve their services and other sectors, such as wealth management and investments, have also harnessed the power of tech to simplify services, cut fees and improve access. This trend will continue.
On the importance of technology:
With the app and online tools for comparing switching, it’s great to see technology playing a key role in the CMA’s recommendations. Tiresome paperwork and inconvenient face to face appointments do not suit many consumers of financial products. Banks and financial institutions must find a way to support the iPhone generation whilst making their technology easy and simple to use so as to not isolate the non tech savvy.
In this day and age with smartphone ownership in the UK at around 75% of the adult population and around 50% of people banking online, banks must use technology to make their services not only easier to compare but more transparent, accessible, and easier to use. We’ve also seen technology play a huge role in reducing fees in other parts of the industry – the banks need to jump on board.
Making switching bank current accounts easier is key. But what about savings accounts? Too many people have money locked up in record low interest rate accounts. Any switching service must include comparisons to savings and investments accounts that give Briton’s a real chance to grow their money.