High street banks in the UK have a long history dating back many years and have traditionally had a reputation for strength and fairness to their customers, although recent events have taken a toll on this. There is now a much larger pool of bank current account issuers in the UK, but these main high street options have been merged in recent years, with new options in the form of online banking and other alternative methods .
The big banks are using their excellent competitive positions to enable them to attract more customers and promote their brands to promote themselves as the main players in the current account market, which has always been a great way to attract new customers. and to earn profits through other products such as mortgages, credit cards, overdrafts, loans and bonds.
In the UK, several of the major high street banks are now partly owned by the UK government, which was forced to bail them out during the troubled economic times that continue to this day. Companies like Lloyds and Royal Bank of Scotland have large government-owned shares which are likely to sell their shares fairly quickly and have only entered this market to stabilize banks which might otherwise have ceased altogether their activities, which would lead to much more serious problems. circumstances for all their members and shareholders and for the UK economy as a whole. Much of Britain’s deficit stemmed from this government involvement and it seems likely that this debt will continue for many years to come.
We can conclude that the big banks remain in a strong position in the UK financial banking sector and have the ability to attract consumers simply by their dominant position as well as the strong advertising campaigns they can afford to produce. Although there has recently been an enlargement of the type of banks that issue current accounts, street banks still hold the vast majority of customers and some of these new alternatives, such as online banking, are still considered very minority. It has been interesting to see so many acquisitions taking place in this market with smaller regional banks being taken over by ever expanding banks which in most cases have also expanded internationally as well as in many other financial sectors, well beyond consumer current accounts.
By Tom Gurney