"If anything, the reduction in competition has filtered through faster than we expected, with big bank brands now less competitive across a range of products. Consumers' interests are best served by having a wider mix of providers in the market, both large and small. The majority of the most innovative and competitive products of the last few years have not come from the established big banks but from new entrants and challenger brands.
"That said, the planned shake-up of RBS and Lloyds doesn't necessarily guarantee a better deal for consumers and many will be aggrieved if they are forced to switch providers as a result of a sell-off. If new brands are to make a cut-through and impact on the market, focus will need to be given to product innovation and improving the switching process. Let's not forget, it's not only about branches: the brand and customer relationships are what matters most."
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