UK Banking Industry- A Competition Commission’s Banking Report

In recent years, the banking business has received a lot of attention. Almost every element of a bank’s business has been the subject of 18 distinct probes and examinations. The personal banking industry has changed dramatically. Competition from a variety of new entrants, new channels, and new products has put pressure on banks’ traditional role as providers of financial services. Competitors have emerged from both near and far, including building societies and foreign banks, as well as insurance firms, apparel, and food commerce.

All elements of banking activity have been impacted and continue to be influenced by advances in information collecting, storage, processing, transmission, and dissemination technology. Information technology advancements have an influence on virtually every element of banking and may be considered one of the primary drivers of change in the banking industry.

Technology’s influence may be divided into six categories:

• How technology is affecting banking competitiveness and contestability (possible competition)
• Economies of Scale and the Impact of Technology
• Branch network economics is a study of the economics of branch networks.
• The development of multi-media and how technology is changing the nature of the customer-banking interface
• How technology, when paired with a deconstruction process, affects financial businesses’ optimum organisational structures
• The consequences of these developments for the financial system’s structure, especially whether a single dominant banking company model is likely to emerge.