Which? executive director Richard Lloyd said:
“We’re pleased to hear the Chancellor say that banking must be reset to work for customers not bankers. This is the big change that people want and that Which? has been campaigning for. It is absolutely right to enforce a tough ring-fence between retail and investment banking to protect the interests of ordinary customers, and the proposed changes to the vital payments system should benefit consumers by increasing competition, creating a more level playing field for new and smaller banks.
“We’re also encouraged that the Government accepts the need for proper professional standards in banking. The Parliamentary Commission must now recommend far-reaching proposals to reform banking culture and practices, including a fully independent code of conduct that is backed by statute. We want bankers to put customers first, not sales, and to be punished for mis-selling and bad practice.
“Taken together the reforms announced today could be game changing and good news for consumers used to despairing at shoddy service, unfair fees and complicated switching. However, in the past the banking industry has lobbied hard to water down reforms so we look to the Government to see this through and make 2013 the year that banks start working for customers, not bankers.”