Former Santander executive will be new voice of UK banking

Former Barclays and Santander executive Stephen Jones has been named as the new voice of the UK banking sector as the still-embattled industry seeks to rebuild trust.

The appointment, first reported by Sky News , sees Mr Jones become chief executive of UK Finance - a new trade association that is poised to become one of Britain's most powerful lobbying groups.

The body, which will become operational in the summer, will absorb the British Bankers' Association (BBA), Council of Mortgage Lenders, UK Cards Association and three other bodies.

It will play a crucial role in representing parts of one of the UK's biggest industries during negotiations between the Government and Europe over the terms on which Britain leaves the EU.

Sources said that Mr Jones would also be given a licence to tackle other major issues for the banking sector, such as the pace of innovation shaping consumer behaviour, customer service and the rebuilding of trust a decade after the financial crisis erupted.

They added that he would seek to promote the interests not only of its biggest members - major high street lenders like Barclays (LSE: BARC.L - news) and Lloyds Banking Group - but also the wider firmament of payment utilities, credit card providers and challenger banks.

City figures regard the role of UK Finance as being especially important with Brexit looming in 2019.

There remains significant uncertainty about the scope of new trade arrangements between Britain and the European Union, the nature of which will have a profound effect on the UK banking sector.

UK Finance is to be chaired by Bob Wigley, a former member of the Court of the Bank of England.

A review led by Ed Richards, the former boss of media regulator Ofcom, concluded last year that banking industry bodies should merge in order to reduce costs and create a more effective dialogue with policymakers.