The Future of Banking Commission published their report today, which was orchestrated by Which? the consumer lobby group. The Commissioners of the report were eight figures that came from a large variety of backgrounds such as the Conservative MP David Davis and Business Secretary Vince Cable.
The Commission was created after the banking crisis began, in order to access methods that would force banks to become more accountable to customers, as well as safer and fairer. The thought was also that banks should answer to the taxpayers that created the rescue funds the banks received.
Among the moves of the Commission was intense questioning of City grandees that included everyone regardless of position from chief executives of the top banks to the Governor of the Bank of England. In addition, the Commission made the unprecedented view of asking for public opinions as well.
Presently, if a bank goes bankrupt, customers of the said bank that are not under FSCS coverage must seek aid after corporate bondholders in the creditors’ queue. Given the fact that corporate bondholders use insurers it is unfair to the consumers that their needs come first.
Another aim is to create safety for consumers because on occasion such as following a divorce or house sale deposits over £50,000 must be made which is why the commission aims to create ‘safe haven’ accounts for this reason with the money placed into Government bonds so that it is safe in the case of bank failure.
In addition, bankers need to make banking a bit more traditional since there is such as large amount of customer dissatisfaction with the banking industry which can be aided by a return to the old branch staff approach.