Competition concerns in this sector arose from the fact that concentration was very high in almost all banking product categories with little evidence of rivalry between the four largest banks which accounted for 86% of total deposits and 99.7% of transactions through the payments system. Fees were also high and increasing rapidly with the incidence of costs falling particularly heavily on low income customers and small businesses. There was also substantial public concern regarding the level of charges of banks and other providers of payment services to consumers. The sector is of particular significance as more efficient and competitive financial services would reduce the cost of capital to SMME’s and all consumers. Lower bank charges and fees would also make banking services more affordable to low income earners.

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