The Sir John Vickers’ Independent Commission on Banking has been trying to find procedures to reduce the advantages enjoyed by the Big Five banks. The aim of the committee is to help people from the high hidden charges levied by these banks.
In a report by the Treasury Select Committee, it was confirmed that the authorities need to introduce procedures for Fair Trading. As per the report, numerous small banks should be introduced to improve the customer’s satisfaction. The Sir John Vickers’ Independent Commission believes that this is not the solution for the problems as the increased number of banks will make the condition verse. As per the commission new policies should be introduced to make the functioning of the banks more customer friendly.
They believe that there is already enough competition in the market. The banks are already trying new procedures to attract customers. The Santander offers £100 on the opening of a new current account. Many banks offer interest-free overdrafts to sign up to students. The problem is that people get fooled by these marketing tricks of the banks.
The banks first attract customers with these sales tricks and then overcharge the customers with the hidden charges. The authorities should solve the problems like the hidden charges for a better customer experience.