Banks in the UK do not have an IT servicing industry and most of them depend on their own computing systems, said Metro Bank chairman Vernon Hill.
The lack of IT servicing has deprived new lenders from much needed IT support to be in the competition.
In contrast, new banks in the US depend on off-the-shelf IT systems for their banking needs.
Hill was quoted by City AM as saying that there are 7,000 separate banks in the US and they have a tradition of outsourcing IT.
"It is very efficient for a new bank to buy a packaged IT programme which is cheap to install and the provider keeps it up to date.
"That is just not here in the UK; no banks ever outsource IT. British banks build their own systems and you can see how far that has got them," Hill added.
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By GlobalDataComments from Hill came after the government authorities were found to be arguing over introduction of new schemes and plans, to drive competition in the banking industry.