First Direct -why so high at £1500 monthly payin ??

Cypher

I disagree Copperplate and I do think First Direct are playing with fire.

If I was a 16-21 year old looking for my first current account, I think I would run a mile from a bank that wanted to charge £10 a month, even if taking a further product would allow the charge to be waived, I would just go to another bank where I didn't have to jump through hoops and probably also get a better interest rate.

PBA I think you may have hit the nail on the head with the First Direct Role, but would HSBC really want to loose those customers to First Direct

pin

Cypher wrote:

I disagree Copperplate and I do think First Direct are playing with fire.

If I was a 16-21 year old looking for my first current account, I think I would run a mile from a bank that wanted to charge £10 a month, even if taking a further product would allow the charge to be waived, I would just go to another bank where I didn't have to jump through hoops and probably also get a better interest rate.

PBA I think you may have hit the nail on the head with the First Direct Role, but would HSBC really want to loose those customers to First Direct

But then again FD isn't concerned with 16-21 year olds who don't really make that much money.

Students are loss leaders for banks, everyone knows that. However I think FD has realised it can't be bothered with having to subsidise students hoping they will profitable customers in the long run.

CopperPlate_2

Cypher wrote:

I disagree Copperplate and I do think First Direct are playing with fire.

If I was a 16-21 year old looking for my first current account, I think I would run a mile from a bank that wanted to charge £10 a month, even if taking a further product would allow the charge to be waived, I would just go to another bank where I didn't have to jump through hoops and probably also get a better interest rate.

PBA I think you may have hit the nail on the head with the First Direct Role, but would HSBC really want to loose those customers to First Direct

But they wouldn't lose them. They would still contribute to the overall profit made by HSBC. It's the same as Coutts & Co being part of RBS. RBS will want to retain wealthy clients, like any other bank, but for those who can afford it, they are unlikely to stop them going to Coutts.

It's fairly obvious that fd aren't looking to attract 16-21 year olds. They don't offer a student account, nor do they offer the 'usual incentives' for that age bracket to open accounts. They are more often catered for by the main High Street banks like Halifax or RBS. I do think fd are taking a risk, but I think it's one that will, in their own eyes, pay off in the long term.

morphious345

pin wrote:

Students are loss leaders for banks, everyone knows that. However I think FD has realised it can't be bothered with having to subsidise students hoping they will profitable customers in the long run.

Bingo. They would rather have 1 profitable customer instead of 10 students who may or may not be profitable. And in response to the "Playing with fire" comment, banks do not take big risks. Ever. Every now and again they will rock the boat but they make it their business to be more profitable year on year, so anything remotely resembling "Playing with fire" simply doesnt happen.

Phoenix79_2

The bottom line is they want 'quality not quantity'. I'm not saying its right but they have thought about this long and hard and are going to see how it pans out. It obviously helps that they have the immense wealth of HSBC to fall back on if it doesn't go to plan. FD are the sacrificial lamb......how they fair will determine if other banks go down the same path in the future.

Cypher

The bottom line is they want 'quality not quantity'. I'm not saying its right but they have thought about this long and hard and are going to see how it pans out

When I spoke to them they said it was nothing new and that it was how First Direct had started, they were merely trying to revert back to offering that premium service, with premium customers that they once stood for.

Gordon_the_Moron

Unless they close the loophole that you can open an E-saver and put £1 in it and never pay the fee, what is all the fuss about?

Apparently same day BACS transactions will be available in the not too distant future (or so I've heard) when that happens it will be extremely easy to simply cheat the deposit threshold of any account by transferring money out to a current account that neither charges a fee nor requires a certain amount of deposits (e.g. Barclays, HSBC, Natwest, Nationwide etc) and then sending it straight back. Lost interest on doing that would be cut too.

peter999

The original concept of First Direct offering telephone banking has been superceded by the internet.

It's probably a precursor to a cutback in their telephone banking staff, as they get rid of all those dormant accounts & move to a premium banking service for smaller clientelle.

peter999

moneymode

peter999 wrote:

The original concept of First Direct offering telephone banking has been superceded by the internet.

It's probably a precursor to a cutback in their telephone banking staff, as they get rid of all those dormant accounts & move to a premium banking service for smaller clientelle.

peter999

So how come they are still recruiting and training staff?

peter999

moneymode wrote:

So how come they are still recruiting and training staff?

They need some extra staff to process closing all those accounts !!:rotfl: