In This is Money earlier this month, Dan Hyde wrote about the Co-op Bank’s acquisition of 632 Lloyds branches and millions of new customers. A Lloyds spokesman said it hopes to finalise the handover by April 2012 after entering ‘exclusive negotiations’ with the Co-op.
Why does Dan Hyde think that this might be good for British banking?
- The mutual does not buy into the bonus culture that dominates our big five banking powerhouses and has a refreshing ethical stance that permeates through its business.
- It boasts a cracking reputation on customer service – 70% satisfaction.
- If a customer exodus jolts rivals to improve their game, it will be a major win for all of us.
- With Co-op’s enlarged customer base, the bank will also start to enjoy the economies of scale needed to increase product range.
- The Co-op Bank has showed determination by offering current account switchers £200 in cash in October – a ‘flash bribe’ which ended early due to huge demand.
Dan Hyde ends by saying that if the enlarged Co-op Bank is successful it would change the face of our High Streets, reversing the decline in mutual banking:
“A business designed to benefit customers, not executives’ wallets and powerful shareholders, is exactly the sort of sustainable model we need if we’re to cure our sickly banking system.”
Read the article here.