The FCA has published a progress report on its ongoing Strategic Review of Retail Banking Business Models.
The purpose of the Review is to consider the sources of competitive advantage that may have helped the major banks retain their market share, and from that analysis consider the potential for change and the impact of that change on business models.
The Progress reports presents the FCA’s initial analysis in particular on funding costs, other benefits of transactional banking, the role of branches and mortgages.
It notes that the next stage of the Review will look at a range of possible future scenarios in retail banking, including the effect of branch closure programs and the impact of technological change.
The FCA invites responses to its update, including views on the areas of focus for the next part of the Review, by 7 September 2018.