The banks in the United Kingdom have enjoyed some of the most flexible, competitive, and cheap banking facilities in the world, but with the  banking systems collapsing through 2008, consumers are looking at the banks changing the way they do things. The country is dependent on the financial services sector, and while they will be focused on restoring the banking system to a viable business they are going to have to change how they do their business.
Most of the damage that was done to the banking economy was in the investment banking market and the way esoteric derivatives were developed and marketed. These activities are going to be highly scrutinised and regulated, and many of the banks will be separating it from the more traditional activities that retail banks partake in. This area of the banking world did not directly affect the average citizen, and it was one of the major sectors that fuelled the banks business. And this is the sector that ultimately collapsed.

What does this mean for the average banking customer? It means that they are now looking at having their usually free current accounts severely limited on how much money they can withdraw at a time. They will also have to keep a minimum balance in their accounts or have to deposit a regular amount of money each month in the account to qualify. Deposit interest rates may also be reduced to a minimum or even to zero, depending on the bank.

Credit cards are looking at having an annual account fee being charged on normal clearing accounts, and cheques that need to be cashed or paid could also be charged. Paper statement requests and other services that banks normally provide for free may now have fees attached to them in order for the banks to keep up. Most business customers are already paying fees similar to the ones the banks are starting to charge regular consumer customers, including overdraft fees and fees for credit lines. Additionally, online banking services may also start to see fees being introduced.

Consumers who are looking at getting loans will see some of the services that were offered becoming things of the past. Margins and spreads on loans will be increased and fewer people will be given loans if their credit is questionable. As things continue to worsen in the economy - and it always get worse before it gets better - more and more banks will see their practices shifting and becoming more competitive. This will lead eventually to fitter banks and more responsible lending. For people with perfect credit this will be an advantage, but for people with credit problems fitter banks that lend responsibly will be detrimental.
Credit is going to be harder to find and consumers should be prepared for stricter and higher interest rates. Fees will become commonplace but this is necessary in order to bring the banking sector back to a healthy level. Hopefully this will happen soon so that the economy can repair itself before more and more people lose everything they have.