For consumers, efficient competition between banks and the ability to negotiate terms or change banks are crucial. Therefore, this week Finans Norge met with representatives of the Ministry of Children and Family and the Norwegian Ministry of Finance to discuss the current situation on the banking market and consumer needs.
Secretaries of state from both ministries were invited to the meeting. Recently, a lot of attention has been paid to price increases and interest rates, which influenced mortgage interest rates. However, deposit rates have not increased equally. High interest rates on mortgage loans have contributed to banks' good results, but at the same time they emphasize the need for competition in the market.
– An increase in loan interest rates may mean that more households will have difficulty managing their debt. It is therefore important that banks provide advice and guidance to customers experiencing problems. Banks must, among other things, inform about the different deposit accounts and savings products available so that consumers can easily choose the best solution for their financial situation, says Trine Fagervik (Sp), Secretary of State at the Ministry of Children and Youth Families.
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– The condition for good competition on the banking market is the ability to easily change banks or use several banks at the same time and to easily familiarize yourself with various offers. The financial portal is a good tool, but the service could be even better. The government fears that switching banks should be easy. This requires providing customers with access to good solutions enabling them to change banks and compare offers, adapted to market changes, says Jakob Bjelland (Sp), Secretary of State at the Ministry of Finance.
Transparent information to customers about savings offers
Ministries are encouraging banks to transparently inform customers about savings offers, especially those with large balances in low-interest accounts. For many customers, it may be beneficial to negotiate with the bank or change the bank to obtain better terms. The government is taking steps to make the process of switching banks easier in the coming years.
The Ministry of Finance plans to discuss competition in the banking market and possible actions in the Financial Markets Report 2024, asking Finans Norge for information on this topic. The ministry also wants to evaluate the information provided to customers regarding various savings products and consider actions that may increase competition in the banking market.
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Source: regjeringen
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