Following the announcement in July , the CMA embarked on a consultation regarding its provisional decision to launch a market investigation. Most respondents agreed that there should be a market investigation. Having carefully considered the consultation responses, the CMA continues to have concerns about the effectiveness of competition in these sectors and has decided to make a market investigation reference. These concerns include:
· low levels of customers shopping around and switching
· limited transparency, and difficulties for customers in making comparisons between banks, particularly for complex overdraft charges on personal current accounts
· continuing barriers to entry and expansion into the sector, limiting the ability of smaller and newer providers to develop their businesses
· very little movement over time in the market shares of the 4 largest banks, which provide over three-quarters of personal and business current accounts.
Any business dealing with the major banks will see little difference between them. The only noticeable difference will be the individual staff member who stands out and offers better service.
The one beacon of light in the finance sector is the factoring and invoice finance sector that has numerous providers who continue to offer a choice of products and a number of the independent companies are quite prepared to offer facilities to those business owners who have poor credit and poor corporate history.
Findmeafactor have excellent relationships with many invoice finance companies and are well placed to offer advice and find the right home for your business .