A modern method that the major players in the

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A modern method that the major players in the industry use to ensure a competitive advantage is ensuring their ability to respond to changes both in the internal and external business arenas. The advancements in the information technology and the increasingly changing demand of consumer wants in the digital era are a very crucial area. The players have all the necessary tools at hand to ensure that a turnaround in case an application becomes obsolete is quick and effective. New innovative approaches to help reduce and simplify the banking processes make it hard for potential entrant to cope up. Level of Competitive Activity The state of competition in the UK retail banking sector is one topic that has continuously been part of discussions in the arenas of competition authorities and political forums. The United Kingdom Retail Banking Sector is a market that is highly concentrated and is characterized with little to almost no competition. The banking market is comprised of various players including mortgages, personal banking, credit cards and small business enterprises (Barty and Ricketts, 2014). Aided by the ability to find information about the banks online, potential customers are able to compare between banks and go for the one that best suits their needs. Competition is not a determining factor for the choice of the bank for consumers because the levels of completion are very low. The big problem is the complex regulations set by banks in case of bank accounts switch between banks (Barty and Ricketts, 2014). The reason for the reduced competition between banks is due to the saturation of concentration which occurred as an aftermath of the financial crisis as failing institutions were
BUSINESS ANALYSIS: UK RETAIL BANKING INDUSTRY 19 either acquired or merged. The small and medium sized enterprises market is more concentrated and complex to break into due to the specific arrangements between banks and companies. Business customers need individualized and full range of services including services like foreign exchange and trade finance among others. The competition commission and the OFT realized the saturated competition in the UK banking industry and concluded that the sector was operating in a complex monopoly in service provision to SMEs resulting to reduced competition to the disadvantage of the customers. This lend to the reluctant of customers to switch banks because the banks offered similar benefits. A crisis was soon storming up and the need for regulation was established. The main regulators involved were Financial Services Authority (FSA), the Bank of England and the Treasury. The regulators had the complex role of promoting fair and efficient financial services and to help customers achieve fair deals from the financial institutions (, 2016).

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