Competition in banking is under scrutiny.
But all too often the focus of the debate is on the supply side: the market share of the big banks; the emergence of new entrants; and the case for regulatory action that creates a more diverse range of providers. Yet new entrants are queuing up for banking licences and the industry is innovating, suggesting competition isn’t as weak as some reports suggest.
Playing the Field explores the demand side of the retail banking market and how consumer behaviour is strengthening competition. Focusing on the rise of multi-banking – the practice among customers of using more than one bank to access the services they want – the report assesses the implications of this trend for competition in the market, and how policymakers should respond.