Lloyds CEO calls for greater banking choice for small businesses

* Lloyds CEO says should be easier for firms to switch banks

* Lloyds to contribute 5 mln stg to industry fund

LONDON, Feb 10 (Reuters) - The head of Lloyds Banking Group has called for greater competition in providing bankingservices to small firms, including making it easier to switchaccounts.

Britain's competition watchdog is investigating servicesprovided by banks to small businesses as part of a widerinvestigation into an industry dominated by four big players.

Lloyds Chief Executive Antonio Horta-Osorio proposedmeasures including making it easier to switch between lenders byimproving price comparison websites and using technology tooffer more effective services for small businesses.

"We need to take further steps to enhance the banking systemso that it properly serves the economy, and not the other wayaround," Horta-Osorio said in a speech at the British Chambersof Commerce's annual conference on Tuesday.

"Competition in banking is crucial to ensure Britain'sbusinesses and consumers have proper access and choice regardingthe financial services they want, and need," he added.

Britain's biggest four banks -- Lloyds, Royal Bank ofScotland, Barclays and HSBC -- controlover three quarters of current accounts and provide nine out of10 business loans.

Some lawmakers blame a lack of choice for scandals that havebeset the industry in recent years including shoddy treatment ofsmall businesses in financial difficulty and the mis-selling ofloan insurance and complex hedging products.

"There is more that we can do as an industry, working withthe regulators to improve the ease of switching and productcomparability," Horta-Osorio said, adding that Lloyds wouldcontribute 5 million pounds ($7.6 million) to an industry fundworking on the issue.

The investigation by the Competition and Markets Authoritycould recommend Britain's biggest banks be broken up if themarket is found to be anti-competitive.

Lloyds is Britain's biggest provider of personal currentaccounts and second biggest provider of banking services tosmall businesses.

($1 = 0.6575 pounds) (Reporting by Matt Scuffham; Editing by Keith Weir)