Extra financial services competition ‘good’ for borrowers

More competition in the financial services sector would be beneficial for borrowers, it has been suggested.

Phil Jones, personal finance campaigner at consumer body Which?, said that the trend for companies such as supermarkets to offer loans or insurance can improve the quality of service given to members of the public.

“If supermarkets genuinely want to get involved in the market, then we think that will be on the whole a positive thing,” he remarked.

Mr Jones explained that new entrants to the financial services market will spur lenders on to “up their game” and deliver better products.

He also said that Which? would like to see more people switching products – possibly as a form of debt management – so that they do not become tied down to certain providers.

A recent Defaqto report entitled Retail Banking: Challenging Times found that brands such as Tesco should be in a strong position to offer current accounts and related services to customers.

By Jamie Price