FCA consults to simplify Retail Banking data collection

The FCA today published a consultation paper with proposals to transform Retail Banking Business Models data collections into an annual return to enable the regulator to monitor competitive dynamics to identify shifts, spot emerging harms and intervene where needed.

Damien Burke, Head of Regulatory Practice at leading independent financial services consultancy Broadstone, commented: 

“The FCA’s consultation aims to streamline the reporting process for retail banks to enable greater automation and, ultimately, drive improved, informed regulatory decision making in this area of the market.

“The greater clarity around reporting expectations should help larger firms meet requirements in a timely and consistent manner, while also giving challenger firms a clearer understanding of the areas and activities where they can compete effectively.

“Improving data collection is critical to driving a well-functioning market that serves its customers fairly. These changes should enable the regulator to spot potential harms, identify structural pressures earlier and create an accurate picture of the dynamics within retail banking.”

FCA: Consultation Paper CP26/3*, Retail Banking Business Models (R2B2): Replacing the ad hoc collection of R2B2 data with an annual regulatory return