Co-operative Bank

johnerz

The Co-operative Bank, I like the idea of ethical policies, not investing money where their customers do not want them to etc.
It sounds great, but is it too good to be true? Are the Co-operative Bank any good and do they do what they say?

VfM4meplse

The Co-Op isn't too good to be true but were you aware of the merger with Britannia? Not sure how this will affect the ethical standpoint of the bank.

Extant

VfM4meplse wrote: »

The Co-Op isn't too good to be true but were you aware of the merger with Britannia? Not sure how this will affect the ethical standpoint of the bank.

The merged entity will be under The Co-Operative Group, so I can't see why this would change at all.

VfM4meplse

Will existing Britannia accounts be re-branded to reflect the Co-Ops' values?

realaledrinker

Some good stuff here:

www.goodwithmoney.co.uk

They put their money where their mouth is too:

"The Co-operative Bank has switched the vast majority of its branches across England and Wales to renewable electricity which means that the Bank is now probably the largest corporate purchaser of green energy in the country, with virtually all of its electricity supply now being green (97 per cent). The only branches not to switch are a few where the Bank has no direct control of electricity supply.

The Bank's Manchester Head Office is supplied from hydro-electricity generated on the Manchester Ship Canal. London offices at Prescot Street are supplied with electricity derived from the burning of biogas arising from sewage sludge digestion. Major occupancies in Salford, Skelmersdale and Stockport receive electricity from the burning of biogas arising from landfill gas sites in St Helens and Chester."

realaledrinker

VfM4meplse wrote: »

Will existing Britannia accounts be re-branded to reflect the Co-Ops' values?

Integration will take up to three years per the press release.

sons_2

realaledrinker wrote: »

Integration will take up to three years per the press release.

and they will not rebrand, both names will stay. The press release also stated that they felt it was a good fit due to the ethics and what they are each good at.

CopperPlate_2

sons wrote: »

and they will not rebrand, both names will stay. The press release also stated that they felt it was a good fit due to the ethics and what they are each good at.

- from https://www.britannia.co.uk

Not entirely correct.

"The new business will continue to trade under the Britannia and Co-operative brands, as well as the Smile internet bank and Platform intermediary lender brands. It will look to move quickly to a single product range once the necessary integration of customer systems is complete, but customers will see no immediate change to the products and services they receive."

Given that it's effectively a takeover of Britannia by Co-Operative Group, suggestions on a postcard regarding the 'single product range' they refer to.

Co-Op bang the ethical drum time and again, but if you look more closely - they give political donations to the Labour Party/Co-Operative Party, they still invest in companies which in turn may invest in organisations which the Co-Op Bank would not invest in so their money is indirectly going to the very companies they themselves would not invest in I'd hazard.

They pay pathetic[/b[ interest on their savings accounts and no interest on their current accounts (even Smile only now pays 0.12% interest) so how this squares with being an 'ethical' organisation, I don't know. I suppose they are treating everyone the same - poorly.

sons_2

CopperPlate wrote: »

- from www.britannia.co.uk

Not entirely correct.

"The new business will continue to trade under the Britannia and Co-operative brands, as well as the Smile internet bank and Platform intermediary lender brands. It will look to move quickly to a single product range once the necessary integration of customer systems is complete, but customers will see no immediate change to the products and services they receive."

Given that it's effectively a takeover of Britannia by Co-Operative Group, suggestions on a postcard regarding the 'single product range' they refer to.

Co-Op bang the ethical drum time and again, but if you look more closely - they give political donations to the Labour Party/Co-Operative Party, they still invest in companies which in turn may invest in organisations which the Co-Op Bank would not invest in so their money is indirectly going to the very companies they themselves would not invest in I'd hazard.

They pay pathetic[/b[ interest on their savings accounts and no interest on their current accounts (even Smile only now pays 0.12% interest) so how this squares with being an 'ethical' organisation, I don't know. I suppose they are treating everyone the same - poorly.

The single product range refers to the products offered, presently if you go into a Brittania for financial dvice or insurance they will only advise on AXA products, instead this will be Co-op products. Since when has a single product range meant they will re-brand a company. They clearly stated that both names will remain.

The ethical bit means how they invest and who they will lend to not what interest rates they offer. I bank with the co-op for my current account and am ok with the low rate, however their savings products are around average - not great but not the worst either. Who do they invest in that in turn invests in unethical companies and how does donating to the labour party mean you are not ethical?

realaledrinker

Maybe being pedantic but the Co-operative Bank do not donate to any political party. The Co-operative Group donated to the Labour Party & the Co-operative Party. They also took stands at all the main party conferences to promote their ethical position - Lab, Lib, Tory, Scot Nat so that is a pretty balanced approach I think you'll agree.

Also crap interest rates are nothing to do with being ethical or unethical, which my dictionary defines as "motivation based on ideas of right and wrong", which describes the Co-op Banks Ethical Policy pretty well.

http://www.goodwithmoney.co.uk/servlet/Satellite/1200903577042,CFSweb/Page/GoodWithMoney

Please refer us to any other UK company with an Ethical Policy which can match this.

rb10

realaledrinker wrote: »

They put their money where their mouth is too:

"The Co-operative Bank has switched the vast majority of its branches across England and Wales to renewable electricity which means that the Bank is now probably the largest corporate purchaser of green energy in the country, with virtually all of its electricity supply now being green (97 per cent). The only branches not to switch are a few where the Bank has no direct control of electricity supply.

This isn't anything unique to the Co-op. HBOS only use "green" energy to power branches, offices and call centres...

http://www.hbosplc.com/community/Environment.asp wrote:

In 2007, HBOS became carbon neutral in the UK. We achieved this through energy efficiency measures, purchasing 100% green electricity and carbon offsetting.

... and Nationwide too ...

http://www.nationwide.co.uk/bettersociety/environment/energy.htm wrote:

We continued to purchase 100% of our electricity from renewable energy sources (currently excluding Northern Ireland operations), and this had a positive effect on our carbon footprint.

realaledrinker wrote: »

The Bank's Manchester Head Office is supplied from hydro-electricity generated on the Manchester Ship Canal. London offices at Prescot Street are supplied with electricity derived from the burning of biogas arising from sewage sludge digestion. Major occupancies in Salford, Skelmersdale and Stockport receive electricity from the burning of biogas arising from landfill gas sites in St Helens and Chester."

Not sure the other banks can compete with this though!