2016年-FCA英国金融行为监管局_ms14_02_4_update_7页_255kb

Cash Savings Market Study Update Summary (MS14/2.4)

Core Content

This document outlines the findings and next steps from the FCA's 2015 cash savings market study, which aimed to improve competition and consumer outcomes in the savings market. A series of randomised controlled trials and follow-up consumer research were conducted to evaluate the effectiveness of various remedies, including the switching box, return switching form, and digital reminders.

Main Findings

• Market Overview: Almost all UK adults (93%) have a cash savings account, with a total of around £700bn held in such accounts.
• Market Issues:
  • Many customers are not switching to better interest rates, even when they are available.
  • Providers often offer lower interest rates on older accounts compared to newer ones.
  • Consumers are hesitant to switch due to perceived hassle and low gains.
  • Large personal current account providers have an advantage due to their ability to attract savings balances despite offering lower rates.
• Remedies Tested:
  • Switching Box: Mixed results; led to a modest increase in internal switching but no significant increase in external switching. Some participants were confused about the purpose of the switching box.
  • Return Switching Form: Increased internal switching by approximately 9%, with no negative impact on external switching.
  • Digital Reminders: Effective in encouraging action, with email and SMS reminders comparable to letter-based reminders in certain situations.

Key Information

1. Disclosure Remedies

• Objective: Improve pre-sale and post-sale information for consumers.
• Action: Firms must provide a summary box of the main features of savings products, and improve the frequency and timing of customer communications.
• Effective Date: The new rules will come into effect at the end of 2016.

2. Switching Remedies

• Objective: Make switching easier and more transparent.
• Action: Introduce new provisions to facilitate switching, and improve the cash ISA switching process.
• Progress: The FCA is working with the industry to speed up cash ISA transfers.

3. 'Sunlight' Remedies

• Objective: Increase transparency of interest rates.
• Action: Published data on the lowest interest rates for easy-access accounts and ISAs, continuing to highlight market disparities.
• Link: Second Sunlight Report

4. Convenience Remedies

• Objective: Reduce barriers to managing savings across multiple providers.
• Action: Aim to allow customers to manage accounts in one place, regardless of the provider.

Next Steps

• Disclosure and Switching Rules: These new rules will be in effect by December 2016 and will improve pre-sale information and consumer awareness.
• Digital Reminders: The findings support the guidance that will come into effect in December 2016, encouraging firms to consider customer preferences when choosing communication channels.
• Auto-Renewal of Fixed Term Products: The FCA found limited consumer detriment from auto-renewal, so no further regulatory action is planned. However, the practice of offering cooling-off periods is widespread, and the FCA will monitor it periodically.
• Challenger Firms and Long-Standing Customers: The FCA is committed to improving outcomes for long-standing customers and encouraging them to shop around for better savings products. Further analysis is required to determine if additional regulatory tools are needed to promote more effective competition.

Additional Research

• Quantitative Research: Conducted by Accent Marketing & Research Limited, it found that the second switching box trial's results were due to customers not reading the information.
• Qualitative Research: Undertaken by Optimisa Research Ltd, it indicated that the switching box was well-received but needed clearer rationale to be more effective.

Conclusion

The FCA remains focused on addressing the issues identified in the cash savings market study. While some remedies have shown effectiveness, others require further analysis. The findings will inform future regulatory proposals, with a particular emphasis on improving transparency, convenience, and competition in the savings market.