Having a diverse range of providers of financial services has been shown to result in more effective competition for consumers, as well as a more stable financial system. The Coalition Government therefore made a commitment in 2010 to foster diversity in financial services and promote mutuals.
Research commissioned by the BSA has found that the degree of diversity had declined prior to the financial crisis of 2007-08. However, it also found that far from improving since 2010, the degree of diversity had actually deteriorated slightly.
Read the full report, here.
Read the press release here.