British grocer J Sainsbury plans to take full control of its joint venture with Lloyds Banking Group, following the same path as rival Tesco, as grocers seek to capitalise on the unpopularity of traditional banks.

Although politicians are keen to encourage greater competition, the “big five” – Lloyds, RBS, Barclays, HSBC and Santander UK – control 83 per cent of current accounts as customers appear reluctant to switch.

Sainsbury sells products such as loans and insurance to about 1.4 million of its 20 million weekly grocery customers. Marks & Spencer is the only retailer to offer current accounts, charging a monthly fee.

Sainsbury, however, could copy Tesco’s plans to launch current accounts after Britain introduces new rules later this year designed to make it easier for customers to switch. – (Reuters)