UK high-street banks are being made to “police” transactions carried out by payments providers, experts have said, ultimately making it harder than ever for non-banks to access basic services and accounts.
Industry insiders suggested on Tuesday that the only way to stop UK banks from cutting ties with payment service providers (PSPs) — an increasingly urgent issue for the sector — would be to shift liability away from major financial institutions.
“Banks don’t want to bank money remitters,” said Paul Anning, the head of Osborne Clarke’s payments practice, at Tuesday’s Westminster eForum event in London.
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