Virgin Bank

PROLIANT

Guy's not sure if this has been posted previously however I thought it would be a great time to get some debate going on Richard Branson’s latest business venture - Virgin Bank.

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/2786104/Virgin-plans-high-street-bank-within-a-year.html

ShelfStacker_3

I'd be willing to bet that if it did happen, it would most likely be either like the Virgin Money cards (e.g. franchised out to another company licensing the name) or First Direct/Cahoot/Smile (e.g. have to transact business via an existing bank).

Even so, the current banks have decades', and millions of pounds worth, of infrastructure, premises and trained staff which would be hard for an upstart to match or even come close to, giving them a massive handicap right from the get go. Add to that that retail banking is, by and large, unprofitable (certainly not profitable on the scale of credit cards) and that not everyone is universally adoring of Richard Branson, and the putative Virgin Bank would have a very tough time of things.

PROLIANT

Interesting, but this could be the change that gives the banking industry a fresh new look, with a guy like Branson in the driving seat there is no doubt that the bank would be a success - hey lets give him the benefit of the doubt, he runs a train company - albeit he didn't know much about the rail business back in the day, but he will hire the right people to do the best possible job for him.
I will most certainly give Virgin Bank a try, if it doesn't work out for me then so what, no loss to me. :beer:

sweetstudent

ShelfStacker wrote: »

I'd be willing to bet that if it did happen, it would most likely be either like the Virgin Money cards (e.g. franchised out to another company licensing the name) or First Direct/Cahoot/Smile (e.g. have to transact business via an existing bank).

Even so, the current banks have decades', and millions of pounds worth, of infrastructure, premises and trained staff which would be hard for an upstart to match or even come close to, giving them a massive handicap right from the get go. Add to that that retail banking is, by and large, unprofitable (certainly not profitable on the scale of credit cards) and that not everyone is universally adoring of Richard Branson, and the putative Virgin Bank would have a very tough time of things.

The correct term is Oligopoly, where as there is too much start up costs involved.

how many banks, save for Islamic Bank of Britain, have set up in the last few decades!!!

I personally will not move from HSBC untill another bank can offer me a Graduate account and my interest free OD!!! lol

Kavanne

I would apply for a job at the Virgin Bank. definitely.

Extant

This is more likely to start as an internet bank - which isn't actually that difficult to set up any more. Yes, it requires significant capital to start, but acting as an agency bank gives the benefit of the major infrastructure being already deployed by another bank.

Sounds like fun!

97trophy

very interesting!

Hazzanet

BarclaysManager wrote: »

Sounds like fun!

So you'll be tendering a copy of your CV to them if they try and get off the ground?

Extant

Hazzanet wrote: »

So you'll be tendering a copy of your CV to them if they try and get off the ground?

No. Although I was going to leave Barclays to work somewhere else, I was convinced to stay, and that comes with certain terms and conditions.

I shall leave this one to ShelfStacker.

noh

PROLIANT wrote: »

Guy's not sure if this has been posted previously however I thought it would be a great time to get some debate going on Richard Branson’s latest business venture - Virgin Bank.

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/2786104/Virgin-plans-high-street-bank-within-a-year.html

That story is over a year old (12:09AM GMT 19 Mar 2008).
A year has passed now and no sign of Virgin Bank.

Nigel

Extant

noh wrote: »

That story is over a year old (12:09AM GMT 19 Mar 2008).
A year has passed now and no sign of Virgin Bank.

Nigel

How fast do you think it is to set up a bank exactly?

Unless they're going to run it off borrowed mobile phones and an Excel spreadsheet, you wouldn't hear anything this fast anyway.