FSA's breaks for new banks could pave way for smaller players

New entrants to the banking sector could be given special breaks from tough regulation following new proposals announced by the Financial Services Authority boss Lord Turner.

Michael Ossei, personal finance expert at uSwitch.com, says: "These proposals could take us a step closer to creating a level playing field between traditional high street banks and new entrants. This is urgently needed to restore consumer confidence in banks and make competition work.
 
"Confidence in traditional high street banks has been battered these last few years - consumers want and need more choice. Our research shows that four in five (80%) consumers would consider switching to a new entrant, even if they don't have prior banking experience - a telling reflection of the state of the UK banking industry.
 
"New entrants are hot on the heels of traditional banks, winning customers over with their untarnished reputations, and promise of superior rates and customer service. Hopefully these proposals will not only make it easier for new banks to operate, but act as a wake-up call to the larger players that still dominate the sector to pull their socks up."
 
For more information, visit uSwitch.com.