According to an article HERE, the competition in UK financial services is not working. The article said that the UK financial services companies have not been able to win market share by focusing on customer service and good value products because consumers do not tend to switch from providers who treat them badly. The article state 4 reasons why consumers do not tend to switch providers:
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Consumers simply do not know they bought a wrong product. “Buy the wrong pension and you may not know for 35 years.”
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Significant informational asymmetries between providers and consumers and as a result consumers do not know they have been treated badly.
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Confusion and complexity in “impenetrable jargon, pages of terms and conditions, bizarre exclusions in the reams of small print, products launched and withdrawn with often bewildering frequency”.
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Poor financial literacy in the UK among consumers.
Singapore has identical problems as ...
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