UK competition body says customers pay too much for banking services

LONDON, Aug 9 (Reuters) - Britain's competition watchdog haspublished its final recommendations for boosting competition inhigh street banking, its measures not differing significantlyfrom options it published in May to widespread dismay amongconsumer groups.

The Competition and Markets Authority said older and largerbanks don't have to compete hard enough for customers' business,and smaller and newer banks find it difficult to grow.

"This means that many people are paying more than theyshould and are not benefiting from new services," the CMA saidin its final report on Tuesday.

It said banks will have to implement "Open Banking" by early2018, a programme to "accelerate technological change".

It also said that banks will have to set a monthly cap onunarranged charges, and tell their customers about it - ameasure that was criticised as being too weak by consumer groupswhen first announced in draft form in May.

(Reporting by Huw Jones, editing by Andrew MacAskill)