LONDON, Feb 4 (Reuters) - Britain's finance minister GeorgeOsborne said on Monday the government will present detailedproposals to open up the country's bank payments system andreduce the "big four" dominance of high street banking.
Questioning why it takes days for cheques or credit paymentsto go through in an age of instant communication, Osborne said,
"We will make sure that new players in the market can accessthese systems in a fair and transparent way."
He is expected to launch a consultation in the spring,government sources said.
His comments, in a speech on banking reform, signal astep-change in the government's drive to move banks' paymentsystems away from self-regulation after public trust collapsedfollowing scandals such as mis-selling loan insurance andrigging the Libor benchmark.
Bank of England director of financial stability, AndrewHaldane, has called for a single platform to make it easier forpeople to switch accounts and new entrants to set up shop.
The payments system is owned and run by HSBC,Barclays, RBS and Lloyds, representing75 percent of personal accounts, a set-up the government feelslacks incentives to invest in better services for customers.
Metro Bank, launched in 2010, is first new high streetlender in more than a century. It, along with others like VirginMoney and Aldemore, have yet to win significant market share.
New entrants must ask an existing lender for access to thepayments system.
"Asking your rival to provide you with the essentialservices you need at a reasonable price is not a recipe forsuccess," Osborne said.
He also confirmed that from September, every bankingcustomer will be able to switch their account within seven days.
Barclays (BARC)
Lloyds (LLOY)
HSBC Holdings (HSBA)
