If the industry doesn't get things right they only need to look to other failing markets to see what might be in store. With the referral of the energy market to the competition commission last week, Which? wants wider recognition that radical action is needed when competition is failing and markets aren't working for consumers.
In the UK and elsewhere, the financial services industry is in the eye of the storm. The industry probably accounts for around 9.5% of UK GDP. Yet in the wake of the financial collapse, seemingly never-ending penalties for mis-selling and market manipulation and the continuing public outrage over bankers' compensation, many have come to believe that the industry is both rotten to its core and has become totally dissociated from the society which it is supposed to be serving.
The crisis showed that the pivotal role of the banking system, essential for the smooth running of our economy, comes at a cost. Although bankers were the ones taking hazardous risks, it was ordinary people footing the bill, when governments used tax money to prop up failing banks. It raised the question of whether banks were there to serve people or the other way around.
Although I agree that Banks and Financial technology firms should be looking to partner and work together where possible to improve the proposition for customers, I don't necessarily believe that this strategy will make banks more innovative and provide better services for you, I and our businesses...