Some banking customers in Northern Ireland may be paying higher charges on their personal accounts due to a lack of competition, it was revealed today.
The Competition Commission said its preliminary findings suggest consumers in the North are losing out due to the dominance of the Big Four - Ulster Bank, Northern Bank, First Trust and the Bank of Ireland.
Inquiry group chairman Christopher Clarke said: "From the evidence we've seen so far, it appears that, despite changes by some, but not all, of the banks in their products and prices, competition in the provision of personal current accounts in Northern Ireland is not fully effective.
"As a result, some PCA customers may be paying more in charges and in a wider range of circumstances, and may be receiving lower interest when their accounts are in credit, than might be expected in a competitive market."
Mr Clarke said the commission's document found a relatively small number of customers switch their personal accounts as they believe it is difficult, time-consuming, risky and of little benefit.
They also have a high sense of loyalty to their current bank and are concerned by the impact of their long-term banking relationship.
Mr Clarke added: "They also see little difference between the products offered by the individual banks and given the complexity and lack of transparency of their banks' products and charges, customers find it difficult to make comparisons between them.
"It also appears that this low level of switching may allow the banks to charge higher prices than would otherwise be the case," he said.
PA