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Focus on consumers “forcing change in banking industry”

Santander

2 min read Partner content

MPs were in agreement last week that scale challenger banks like Santander were improving the banking sector by providing serious competition to the ‘big four’, as well as driving improved industry standards through a focus on customer service.

Speaking at a reception in Parliament, Conservative MP Mark Garnier, a member of the Treasury Committee, argued that while some were content to lambast the banking industry, banks were undeniably “the oil pump of the UK economy”.

“This is an industry that we should cherish in this country” he said, as a strong banking sector benefitted everyone; the banks, consumers and the UK economy as a whole.

Competition in the sector was key, stated Garnier, also a former member of the Parliamentary Commission on Banking Standards, arguing that there was no better driver of improved banking standards than educated consumers.

Former Treasury Minister Mark Hoban MP said serious challenger banks like Santander would do exactly this, as they were able to “shake up” the banking industry.

“I think consumers need choice” he said, “but they also need to feel there is a better deal somewhere else. This is what Santander are offering.”

“There is a big change in the banking sector; people want to see more competition and more challengers. Santander shows how it can be done.”

Ana Botín, Banco Santander Group Executive Chairman, described how the bank was focusing on increasing its customers and the loyalty of customers, with a quarter of all consumers that were switching banks in the UK moving to Santander.

She explained how Santander was doing much work in other countries around the world, but its investment and work in the UK would be a key point of reference for what approaches to take.

“Increasing growth and increasing jobs must be our target.”

Chief Executive of Santander UK, Nathan Bostock, emphasised the bank’s focus on customer service, saying a commitment to providing “simple, personal and fair” service was paramount in the bank’s culture. Explaining Santander UK’s role as a scale challenger, he said the bank would use its scale to continue to build a presence in commercial banking and give SMEs not just financial help – but practical advice grounded in local insight to help them grow their businesses.

Labour MP Steve McCabe praised Santander’s 1|2|3 current account, saying it “will force change in the industry”, as it is was valuable to consumers that it challenged other banks to keep up.

The account, which helped Santander to be named the Best Current Account Provider 2014 by price comparison website Moneysupermarket.com, was proving extremely valuable to consumers in his own constituency of Birmingham Selly Oak, McCabe added.

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