App plan in banking shake-up.
BANKING customers could avoid being stung by overdraft charges by instructing apps to automatically move their money around for them, under a watchdog's plans to shake up the sector "for years to come".
The Competition and Markets Authority (CMA) unveiled a package of measures to help customers to shop around to get a better deal, after finding older and larger banks do not have to compete hard enough for customers' business and newer and smaller banks find it difficult to grow.
Banks will be required to speed up advances in technology by putting "open banking" in place by early 2018.
People and small businesses will be able to manage the accounts they hold with several different providers on one app.
This could mean that rather than having to constantly check their bank account themselves to avoid going in the red, someone could preinstruct their app to move money from another provider into their account if they are about to go overdrawn.
The CMA said "many people are paying more than they should and are not benefiting from new services".
Alasdair Smith, chairman of the CMA's retail banking investigation, said: "We are breaking down the barriers which have made it too easy for established banks to hold on to their customers."