Can LTSB sell its customers?

northerner77

http://www.bbc.co.uk/news/business-13695189

Lloyds can't force its customers to become clients of the bank that buys its branches. But in the absence of being able to compel customers to do their business with the new owners, it is not at all clear how you would put a price on the business being sold.

I am told that Lloyds will promise to send across new customers, to replace those who may take their savings - or their debts - elsewhere. But the mechanics of doing that feel messy.
Or to put it another way, this process of carving out a chunk of Lloyds to create a new force in British banking is going to be complicated and the results are hard to predict.

Robert Peston, BBC Business Editor.


Discuss.

jambosans

I'd perhaps make it clear that you are quoting the author of the article, Robert Preston - although you've sourced the news article, it reads as though you're making that statement.

As far as the Lloyds sell-off is concerned, I'm more interested to see if a new player enters the market in Scotland. I have accounts with Lloyds TSB Scotland and Bank of Scotland, who, by the end of the year, will be (for all intensive purposes) the same bank. The sale of my LTSB Scotland account allows me to diversify where I bank, without the need to do anything . If it goes to National Australia Group (i.e. Clydesdale Bank) I will probably jump ship; Virgin Money and NBNK I will hang on to see what they offer long term.

I think the situation down south is slightly different, and arguably more competitive.

ChiefGrasscutter

Nothing compared to the chaos that will result when/if all the customers of the all 600 odd Lloyds branches decide en mass that they all want all their accounts transferred back to another branch of Lloyds and not be 'sold'.....and all at the same time.

Can you imagine the direct debit chaos that will result in?
Much less all the stored payments in other persons accounts which are directing money into a lloyds account that will need to be changed by those persons (and they won't do it will they despite being told).

This will be a sight to see I'll bet.

jambosans

ChiefGrasscutter wrote: »

Nothing compared to the chaos that will result when/if all the customers of the all 600 odd Lloyds branches decide en mass that they all want all their accounts transferred back to another branch of Lloyds and not be 'sold'.....and all at the same time.

Don't underestimate the passivity of the British general public. Accounts will transfer, and similar to a merger, customers may assume they're still banking with LTSB, C&G or IF but simply in a different guise.

Also, remember Lloyds are selling the TSB brand, so we may see, especially if a new, unknown, player enters the market, the Trustee Savings Bank re-emerge.

pawnbroker_2

jambosans wrote: »

Don't underestimate the passivity of the British general public. Accounts will transfer, and similar to a merger, customers may assume they're still banking with LTSB, C&G or IF but simply in a different guise.

Also, remember Lloyds are selling the TSB brand, so we may see, especially if a new, unknown, player enters the market, the Trustee Savings Bank re-emerge.

I think you are right. As an English RBS customer who has transferred to a Scotland RBS, I have been amazed at the number of people we have spoken to and pre-warned about Santander, who are indifferent and in most cases unaware of the forthcoming change

savagej

www.ltu.co.uk/download/924,dynamic

Thought this might be of interest, could not get the PDF url to copy.

It tells you exactly what they are selling.

From news I have been reading it looks like it is not going to be NAB who buy it, but it is all speculation in various parts of the financial press.

coolesticeking

Does anybody have a list or link to the ones which are going to the new owner?

If my branch is one of them, will be opening a new account ASAP at a branch that won't be part of this sale.

MME_2

coolesticeking wrote: »

If my branch is one of them, will be opening a new account ASAP at a branch that won't be part of this sale.

Why? Absolutely NOTHING is going to change for the next 2 years. When the time is right the bank will write to all affected customers and an option will be to remain with what will become the new Lloyds bank.

Staff aren't going to start wasting time moving accounts around for absolutely no reason when this will be done automatically at request closer to the time.

jambosans

coolesticeking wrote: »

If my branch is one of them, will be opening a new account ASAP at a branch that won't be part of this sale.

I wouldn't jump ship too early. Similar to the RBS branch sale to Santander, I assume Lloyds will give the customer's being "sold" an option to transfer their account to another Lloyd's (or perhaps even Bank of Scotland) branch.

ChiefGrasscutter

Yup, I'd agree with holding fire on moving branches
1. there may be "changes" to individual branches in/off the list before the sale is finalised.
2. I would expect (...errr hope) that the FSA/Lloyds would arrange a seriously detailed plan to migrate seamlessly those who wish to remain with Lloyds with minimum disruption: to both them and their customers. I can't see some corporates account holders being too happy at being "sold".

In fact it should even be possible in today's age to keep the same ac/ & sort code while moving branches. Yes, this would mean sort codes no longer are branch specific but I recall seeing some parliamentary comment on pricisely this point - making them non specific to enable people to move their bank accounts more easily without having to change everything.

coolesticeking

To be honest, after having problems in the past with banks and switching I would just rather myself do all the leg work and I would just close the account (if required) and open a new one myself again at a new branch not being sold on.