Millions of consumers and small businesses have been denied genuine choice in banking for years. The Treasury Committee, the Parliamentary Commission on Banking Standards and the Independent Commission on Banking examined this issue in depth. Everyone concluded much the same: customers do not know how much they are being charged, switching is perceived to be difficult, and would-be competitors in the market face high barriers to entry, often regulatory.

Among other things, in 2011 the Treasury Committee concluded that the regulators should have statutory responsibility for improving competition and choice. This has now been achieved. But it was not enough.

Over a year ago, the Parliamentary Commission on Banking Standards recommended that a market study of both the retail and SME banking sectors begin immediately, recognising that a full market investigation may be necessary. So the CMA’s announcement is an encouraging step forward.

Many previous attempts to reshape banking and provide meaningful competition have faltered in the past. This work is the biggest opportunity for years of better meeting the needs of consumers and SMEs.