The coalition government has said that it would like to see banks and consumer groups help develop a range of simplified financial products to help consumers make the most of their finances .
It is calling for the introduction of a range of products that have standard features, but not price caps, to increase competition and make it easier for people to shop around.
The Treasury recently launched a consultation paper on the issue and said the first products to be developed should be a savings account and life insurance and income protection products. It said savers presently faced a choice of 2,000 different savings products from 150 different providers which made it extremely hard for consumers to compare what was on offer and less likely to switch to a cheaper option.
Mark Hoban, Financial Secretary to the Treasury, said: "The Government is committed to helping consumers take responsibility for their finances. In order to do this they need to be able to make sense of the huge range of financial products in the market. Simple financial products will help them to do that, by providing a safe choice and a common benchmark against which other products can be compared."




