News & Views - Savantor

To charge or not to charge?

Sunday, 09 November 2014
It is said that in the UK, people are more likely to change their partner than their bank account. The vast majority of the general public, due primarily to a combination of apathy and uncertainty, are content to stay with one bank for their current account irrespective of the value of the service they receive. A preliminary review undertaken by the recently formed Competition and Markets Authority found that there is not enough competition in the market for personal accounts and business loans, and that a sweeping investigation would be conducted over the next 18 months. The hold of the 'big four' banks - Barclays, Lloyds, HSBC and RBS - on the market will be specifically under review, particularly in relation to transparency of charging and barriers to new entrants to the banking market. Predictably the big four are not much in favour of this investigation, whilst it is keenly supported by the new challenger banks such as Virgin and Tesco. The area of 'free' banking is likely to be subject to in-depth consideration, as it seen by new banks as one of the key areas of difficulty in breaking into the market, with the bigger banks able to 'hide' the cost of running free accounts from customers with a myriad of other charges. It is however not such a simplistic task to be able to compare bank accounts across the board, with one of the most significant factors affecting choice the actual requirements of the customer. For some, a no-frills bank account is all they are looking for, whilst others need a more comprehensive service not necessarily supported by the feature 'bundles' offered for many fee charging accounts today. There is also the widespread popular belief to be counteracted that current accounts should be 'free', although of course in practice what this means is that a bank looks for other ways to pay for the account. It seems likely that the outcome of the investigation will enforce a number of changes onto the retail banking market, with the intention of removing the current opacity of charges and allowing consumers to make informed decisions about their choice of bank. Whether or not the average consumer makes full use of any new changes will remain to be seen. After all, aren't bank accounts supposed to be free......?
Savantor Services

Savantor Services

Savantor services are tailored to Client needs based on our core service areas

Specialist Resourcing Payments Strategy Platform Transition Operational Efficiency
Savantor Services

Job Opportunities

Consulting and contracting roles in the payments, mobile and banking arena within the UK and across Europe

View more
Savantor Services

Savantor Views

Find out more from our Savantor brochures, MarketEye back copies and Industry opinion

Collateral Market Eye News & Views Sign Up to receive MarketEye

Client Quotes

Market Insights

"Savantor did a good job in helping us understand the dynamics of a key growth area for Trionis. Savantor's ability to listen and their degree of commitment have always impressed me. They have been of great help in providing us important market insights and I would not hesitate to work with them again in future."

Ernst Verbeek, Managing Director - Trionis - Belgium

Business and Platform Strategy

"Savantor successfully advised Rabobank during preparing of the platform migration for cards. Savantor demonstrated thorough knowledge of business processes and market players combined with a practical approach."

Evert Fekkes, Business Information Manager - Rabobank - Nederland

Payments Workshop Material

"Savantor helped ACI build a payments onboarding workshop for new technical staff in ACI EMEA. Their extensive experience took our outline and built a great starting presentation of industry facts that we have now customised further into a half day session that is used for all new joiners. Our Americas and APAC regions have also taken the material and customised it for their regions. A great job by Savantor has meant new joiners to ACI hit the ground running."

Richard Sanders, Principal Solution Consultant - ACI - Worldwide EMEA

Acquiring market insight and strategy review

"Savantor brought an independent perspective and valuable insight that enabled Rabobank to ratify options for delivery and future growth and make informed business decisions in support of our target business model. Having used Savantor on a number of strategic projects, we have no hesitation in recommending their services to others."

Evert R Fekkes, SVP Payment & Savings Services - Rabobank - Nederland

Acquirer Strategy and Operating Model

"Savantor brought an effective blend of European acquirer market expertise and transaction processing solution design. Their experts quickly forged strong working relationships with our team. We enjoyed working with them to create our future acquirer strategy."

Mikko Hyttinen, SVP - Lending Services - OP-Pohjola Group - Finland

Credit Card Launch

"Savantor's knowledge and experience were the key differentiators in selecting them and they contributed greatly to the success of the product launch and the effectiveness of the ongoing operational service."

Toine Schepers, Operations Director - Primeline - The Netherlands

Card Processing Migration

"Disciplined methodology and effective teamwork, guided by Savantor's migration expertise and operational knowledge, were the hallmarks that led to the resounding success of this project, enabling us to maintain and develop our business capability."

Robert Lambert, Head of Cards Strategy - Permanent tsb bank - Ireland

EMV Migration Planning

"It was a strategic imperative for the bank to be EMV compliant for our payment cards and the experience that Savantor brought to the company has proved to be invaluable."

Eddie Sweeney, Chief Technology Officer - AIB Bank - Ireland

Clients - Request Support

Send us a support request and one of our specialists will be in contact to assist you.

Consultants – Upload your CV

Register your CV with us and gain access to a range of job opportunities through our online job search portal.