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A
A-level
BUSINESS
Paper 2 Business 2
7132/2
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BANKING ON CHANGE
The UK banking industry is dominated by the ‘Big 5’
banks. These banks have had costly networks of
physical branches. Recently they have closed many
branches, particularly in rural areas.
New technology and changes to government rules have
opened the market to competition from relatively new
entrants called ‘challengers’. Challenger banks target a
niche and aim to provide better customer service.
Metro Bank, like other challengers, has grown fast, but
unfortunately it had to declare losses after a major
accounting error in early 2019.
APPENDIX A Examples of types of challenger bank
BANK(S) TYPE OF SERVICE
Fully online bank (this type includes
Monzo, Starling
90% of challengers)
Tesco, M&S Bank linked to retailer brand
Metro Bank City branches open 12 hours a day
A
A-level
BUSINESS
Paper 2 Business 2
7132/2
Insert
Source Materials for answering question one.
[Turn over]
, 2
BANKING ON CHANGE
The UK banking industry is dominated by the ‘Big 5’
banks. These banks have had costly networks of
physical branches. Recently they have closed many
branches, particularly in rural areas.
New technology and changes to government rules have
opened the market to competition from relatively new
entrants called ‘challengers’. Challenger banks target a
niche and aim to provide better customer service.
Metro Bank, like other challengers, has grown fast, but
unfortunately it had to declare losses after a major
accounting error in early 2019.
APPENDIX A Examples of types of challenger bank
BANK(S) TYPE OF SERVICE
Fully online bank (this type includes
Monzo, Starling
90% of challengers)
Tesco, M&S Bank linked to retailer brand
Metro Bank City branches open 12 hours a day
