FCA and CMA demand transparency in banking service quality
The UK’s Financial Conduct Authority (FCA) and the Competition and Markets Authority (CMA) have released new rules to allow consumers and small businesses to have better information about the banking services offered by current account providers.
Providers will have to make available on their websites the information regarding how and when services and helplines are available and how to contact them.
Firms will also have to publish how often the firm has had to report major operational and security incidents; and the published level of complaints made against the firm.
There is also a requirement to publish this information “in a consistent format”, with the large banks making this information available electronically via online APIs.
The new rules also say larger banks must publish information (found here) on how likely people would be to recommend their bank and each of their service channels.
Publishing this information in this way will promote effective competition by incentivising firms to offer better services in ways that are transparent and noticeable.
November 2018 will see firms publishing this information in a comprehensive format.
From 15 February 2019, the regulator will also require providers to publish information quarterly on how long it takes them to open a current account, and how long it takes them to replace a debit card.
In recent times, the FCA has been rocking the tough guy look as it clamps down on loan-based crowdfunding platforms.
It also wants to improve standards and communications in the payment services and e-money sectors.
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