Supermarket banking good thing?

chopperharris

Hi anyone else think that the banking industry will suffer even more by supermarket banking/lending , or will it be customers benefit?

What use is a 9-5 high street bank if you can pop into your local supermarket and do your saving , depositing , get holiday currency , loans and mortgages while your there getting your groceries and open much later than 5pm?Theres plenty of banking staff thats looking for work already to take up the reins.

97trophy

I am all for more competition and I look forward to seeing what Tescos come up with.

mrposhman

but which banks are funding the supermarkets?

i assume they don't have direct access to billions in cash so are probably backed by a bank much like the post office with the bank of ireland.

chopperharris

well in the case of tesco they are buying out the rbs part of their partnered banking scheme for just shy of a billion...so they will essentially be their own bank.This will enable them to do loans and mortgages without a high street bank altogether , rbs is/was making 150m a year from their part.

Tesco already have currency in some stores , take deposits on checkouts and of course online banking.And as I said theres going to be some staff out there laid off at the "real" banks that they could scoop up , which could be offsite head office with minimal training needed.

The big banks shoud be worried.....very worried.

so far they are also in

telecom
insurance
credit cards
transport fuel

I reckon their next move after banking will be energy wholesale , and eventually car dealing which would succeed this time around.

I reckon if they float as a bank proper then its an upward share price unlike the rest in banking , because they wont have any toxic debt at its inception it would be the safest banking share there is.