UK competition body says customers pay too much for banking services

LONDON, Aug 9 (Reuters) - Britain's competition watchdog has published its final recommendations for boosting competition in high street banking, its measures not differing significantly from options it published in May to widespread dismay among consumer groups.

The Competition and Markets Authority said older and larger banks don't have to compete hard enough for customers' business, and smaller and newer banks find it difficult to grow.

"This means that many people are paying more than they should and are not benefiting from new services," the CMA said in its final report on Tuesday.

It (Other OTC: ITGL - news) said banks will have to implement "Open Banking" by early 2018, a programme to "accelerate technological change".

It also said that banks will have to set a monthly cap on unarranged charges, and tell their customers about it - a measure that was criticised as being too weak by consumer groups when first announced in draft form in May.

(Reporting by Huw Jones, editing by Andrew MacAskill)