Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

FCA chief faces consumer backlash after signalling possible ‘end of free banking’

by March 16, 2024
March 16, 2024
FCA chief faces consumer backlash after signalling possible ‘end of free banking’

Nikhil Rathi, the chief executive of the Financial Conduct Authority (FCA), has sparked a backlash from consumers after indicating that the regulator would not intervene if banks opted to charge for current accounts.

Rathi’s comments at a bankers’ conference, where he stated that the FCA would not obstruct changes to business models in response to competition and market shifts, drew sharp criticism from consumer groups. Simon Youel from Positive Money expressed deep concern, particularly given banks’ already substantial profits. He emphasized that any move to end free current accounts would further disadvantage the public, especially amid branch closures.

Former pensions minister Baroness Altmann also voiced apprehension over the FCA’s stance, questioning its commitment to consumer support while seemingly endorsing banks’ pursuit of additional revenue from already poorly served customers.

Although banks traditionally offer current accounts for free while charging for overdrafts, there have been past attempts to introduce fees for current accounts. However, such efforts faced strong resistance from consumers. While regulators have long contended that “free banking” is a misnomer, citing low or nonexistent interest rates on balances, some banks have explored charging for current accounts, like Santander’s 123 account, which imposed a monthly fee but offered perks such as higher interest rates and cashback.

Governor of the Bank of England, Andrew Bailey, has previously criticized the concept of free banking, warning that it incentivizes banks to seek profits through the mis-selling of products like payment protection insurance. Nevertheless, attempts by banks to introduce fees for previously free services, such as cash machine withdrawals, have often been met with public outrage.

Rathi clarified that the “free-if-in-credit” banking model in the UK is a market decision rather than a regulatory requirement, and he signalled that the FCA would not impede moves to end free banking, drawing attention to other countries where banks routinely charge fees for similar services.

Read more:
FCA chief faces consumer backlash after signalling possible ‘end of free banking’

0
FacebookTwitterGoogle +Pinterest
previous post
Dear Rishi, EVs are still too expensive & Brits will only start buying them if you do 3 things says Vauxhall boss
next post
US-led resolution seeks international AI policy as tool to end poverty and hunger: ‘urgent’ and ‘unique’ need

You may also like

Why customer reviews are crucial for small business...

August 10, 2025

The EU’s Rushed Rollback of Green Farming Rules:...

April 26, 2024

Carmakers face further hurdle as pound falls

September 29, 2022

British Steel scraps redundancy plans after government intervention...

April 23, 2025

English winemakers set to record record crop after...

October 20, 2023

7 Essential Books to Read Before Law School

March 2, 2023

Confidence rises with signs of business activity increasing

March 13, 2023

England’s Consultant Industry Poised to Become a Leader...

August 26, 2024

Police warn shoppers to avoid fake Wilko websites

October 11, 2023

Crisis-hit CBI shelves plans for tie-up with manufacturing...

September 21, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • XRP price prediction hits new highs, GMO Miner helps you earn $6,800 a day

      August 28, 2025
    • West End retailers lose £310m from VAT-free shopping ban in first half of year

      August 28, 2025
    • Dollar slips as Trump moves to sack Fed governor Lisa Cook in unprecedented clash over central bank independence

      August 28, 2025
    • CDC Director Susan Monarez refuses to be fired as other officials call it quits

      August 28, 2025
    • Bill Gates met with Trump to talk ‘importance of US global health programs and health research’: spox

      August 28, 2025
    • Trump asks SCOTUS to uphold freeze on billions in USAID payments

      August 27, 2025

    Categories

    • Business (8,900)
    • Investing (2,246)
    • Politics (16,503)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved