RETAIL BANK OF THE YEAR | The Shortlist day seven
Retail banking in Britain is in the throes of monumental change this year, as the big-name players grapple with the reforms being drawn up by the Independent Commission on Banking. The shifting landscape has also allowed newcomers to gain a foothold in the market, giving our list of top retail banks this year a fresh flavour.
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SANTANDER UK
IT’S been a mixed year in the UK for Spanish bank Santander. The lender has received criticism for its customer service, yet it isn’t standing still.
Santander has made a strong push to turn its image around, with a whole series of fresh market-beating products on offer, winning over industry commentators.
Despite being a relative newcomer to the British market, the Spanish lender has grown in scale and reputation on the high street.
The lender is also set to push ahead yet further, with a London float penciled in for later this year that could raise around £4.5bn.
VIRGIN MONEY
SIR Richard Branson’s fledgling lender is at the forefront of Britain’s rapidly changing retail banking sector.
The lender is currently preparing to take a giant leap with a bid to buy up to 630 branches being sold by Lloyds. A successful purchase could make it one of the country’s biggest retail banks overnight.
Virgin Money has gradually been building up its customer base, growing it above the 3m mark. Its business ambition is to make “everyone better off” – a philosophy that underpins its approach to business – and it appears to be proving attractive.
TESCO BANK
NEW Tesco chief executive Philip Clarke has said he wants to make the supermarket giant’s banking operation one of his top priorities.
Earlier this year, Clarke said he wanted Tesco to provide “the kind of bank that we all used to love,” in yet another sign that the way retail banks are run is gradually evolving.
With the power and reach of its Clubcard loyalty scheme, Tesco is on the cusp of making a big splash in retail banking.
The grocer will make its push into banking this autumn when it launches mortgages, followed by savings accounts early next year.
LLOYDS BANKING GROUP
CHANGE characterises British high street banking stalwart Lloyds’ year, as the lender adapts to life under an influential new boss and the implications of banking reform.
Charismatic Portuguese chief António Horta Osório took the reins back in March. Since then, he has launched an all-encompassing strategic review of Lloyds’ operations that will accelerate the sale of 630 bank branches.
Lloyds was also the first bank to take the unilateral decision to withdraw from an industry-wide appeal against the FSA over payment protection insurance (PPI), a brave move that could be a wise step for the bank to take.
CO-OP BANK
THE CO-OPERATIVE is one of the few banks to have come through the financial crisis with both its profits and reputation intact.
As a member-owned, customer focused and ethically-led organisation, it has seen a 79 per cent increase in current account switching as its popularity amongst consumers soars upwards.
The Co-op is frequently named amongst the best retail banks in Britain for customer service too.
At a time when customers fear branch closures, the group recently opened a bank in one of its food stores following a petition from residents in a west Yorkshire town who were left without a branch when the last bank there closed its doors.