Handelsbanken

Cliecost

Hi,

I'm thinking of moving my banking to Handelsbanken.

Are they any good, any experiences anyone want to share? Anything you feel I should know?

Thanks,

Paul_Herring

1) They only handle local customers - if there isn't a branch in your area they're unlikely to accept you.
2) They are't protected by the FSCS scheme directly - they're using the passport scheme (remember IceSave?)

That said, they got a good review on the replacement programme for BBC's Saturday MoneyBox program the other week. (The regular show is on holiday at the moment.)

Cliecost

Paul_Herring wrote: »

That said, they got a good review on the replacement programme for BBC's Saturday MoneyBox program the other week. (The regular show is on holiday at the moment.)

That's the main reason why I'm considering them, I heard the program too and I've read good reviews, I was just after customer reviews.

There is a branch just down the road from me (I had no idea until I visited their site)

Paul_Herring

No personal experience with them. Yet...

innovate

Cliecost wrote: »

That's the main reason why I'm considering them, I heard the program too and I've read good reviews, I was just after customer reviews.

There is a branch just down the road from me (I had no idea until I visited their site)

You are considering changing your current account to an outfit that you first heard about on the radio?

What is it you want from a bank?

Handelsbanken are FSA registered and may have FSCS protection (it's not immediately obvious from their website). They probably paid the BBC to let them appear on MoneyBox. They do not appear on the MSE best bank accounts, and their interest rates are complete pants.

I have loads of accounts with all sorts of banks myself because they have offered / are offering something of value (in monetary terms). Handelsbanken has never been one of them. As an example, their ISA is just 1.25% AER - when you can get over twice as much with a high street bank.

Paul_Herring

Handelsbanken are FSA registered and may have FSCS protection (it's not immediately obvious from their website).

It's perfectly obvious from their website.

Sadly the way their site is programmed the links above are broken. About the Bank > Important Information > Deposit protection arrangements

We are part of Svenska Handelsbanken AB (publ) which is based in Sweden. Most depositors are covered by the Deposit Insurance Act in Sweden which establishes the Deposit Insurance compensation scheme (the "Swedish Deposit Guarantee Scheme"), which is also based in Sweden.

This means that if our bank is unable to meet its financial obligations, our eligible UK depositors would be entitled to claim up to £80,540 (1) from the Sweden Deposit Guarantee Scheme. Compensation is payable on a per depositor basis so for accounts held by more than one eligible depositor, each eligible depositor is entitled to compensation up to £80,540 (1). This maximum amount relates to the combined amount in all eligible depositor’s accounts with us, including their share of any joint account, and not to each separate account. Compensation is payable on a gross basis so any outstanding loan or debt that you hold with us will not automatically be deducted from any compensation payable.

For further information about the Swedish Deposit Guarantee Scheme (including the amounts covered and eligibility to claim) please contact us by dropping into one of our branches or by calling 020 7578 8000.

General information is also available from the Swedish Deposit Guarantee Scheme by contacting them on +46 8 613 5200 or visiting their website at https://www.insattningsgarantin.se/en/

Note
(1) The Swedish Deposit Guarantee Scheme will pay a maximum amount of 100,000 euro, which will be converted into pounds sterling at the time the compensation is paid. The £80,540 amount used here is illustrative of how much this could be and is based on an exchange rate of 1 euro to £0.8054 pounds sterling as at 2 July 2012 from the website http://www.reuters.com/finance/currencies.

From the general tone of your post, you didn't hear the episode concerned, nor are a regular listener to the programme.

innovate

Ah, ok, so they aren't part of the FSCS scheme, but a passport scheme.

This rules them out for me forever, even if they did have half-decent interest rates, which they don't.

You are right, I didn't hear the episode concerned - but not sure how you would conclude I am not a regular listener.

alanq

Posts from a thread last year re Handelsbanken following me posting that I had heard it mentioned on Radio 5 Live.

alanq wrote: »

I heard of Handelsbanken (I think on Radio 5 Live's Wake Up To Money) for the first time the other day. Power is devolved to the branch so no call centres and one deals with the same few people over time. They have just opened their 100th branch in the UK. Odd that so much has been in the news of MetroBank's few branches yet I had seen nothing about this bank that has been growing fast in the UK.

Possible downsides:
Not covered by FSCS but by Swedish €100,000 guarantee.

As decisions are made locally it seems that the services offered and any charges due are negotiated when opening an account.

http://www.handelsbanken.co.uk

InsideInsurance wrote: »

Looking into them they are probably not much hype because of the minimium income required to qualify (£100,000) but they appear sensible in terms of if you have both a small business and personal account they will look at the profitability of the business and not just what you withdraw as an income.

System

I arranged to meet with the accounts manager at my local Handelsbanken - more out of interest than anything else. I wanted to see what they were all about.

Had a nice chat and was given a photocpied application form and a list of documents I needed to supply in order to apply for an account. The list included passport, six months of bank statements, council tax bill and payslips for the last three months.

Decided to apply, just to see what happened. Am already with an excellent bank so wasn't really that bothered. Good job really.

It took them a few days to process my application, and a phone call to remind them I hadn't heard. My call was returned the next day and the accounts manager wanted to 'discuss the bank statements'. Although I have an excellent credit rating there was one item, a few months ago, where a direct debit was returned. It was a bank error and I was compensated. That was enough for Handelbanken to say they would probably have me as a customer, but wouldn't be able to allow me an overdraft. I told them not to bother.

I must say, the idea of bank staff looking at every transaction I made would have concerned me - a bit like Banking with Nanny. What about the dodgy DVD I might order, or the, ahem, toys I might be tempted to buy online. Nanny wouldn't like that at all. :rotfl:

IMHO Handelsbanken is like a pubic school which cherry-picks its pupils, then crows about its excellent results and the behaviour of its pupils, or the courier company which only serves profitable routes - of course they're going to look good. Handelsbanken even has to 'like you' to let you become a customer. Any bank cherry-picking customers to this degree is going to look good.

I like anonymity with a good CS if I need it. Handelsbanken offers neither. Tried phoning them at 5.05pm one weekday and they had all gone home. Tried the next day and asked to speak to the accounts manager who had interviewed me, was told she was on the phone and would call back. She didn't. I got a call back at luchtime the next day.

My advice is to leave well alone.

The 'relationship banking' angle just means that they keep a beady eye on everything you do and no doubt will want to have a chat if there is something they don't like. If your credit rating is good you will be able to have the services you require elsewhere and probably at a cheaper rate.

Paul_Herring

IMHO Handelsbanken is like a pubic school which cherry-picks...

Well quite - that was basically the thrust of their section on the program; they get to pick and choose (locally) who they want as customers.

Most banks just centralise the decision and use the credit scoring companies; HB's supposed to be different in that they don't use (solely) those and the decision is left to the branch (manager) rather than being sent to head office for a 'computer says no' response.

The point they made is that since they know their customers personally, they know who they - personally - can lend to and as a result they claim to have a lot lower rate of defaults on loans they make.

Conversely, since they know their customers, (and this is another point made in the programme) and they can decide - locally - who to lend to, they can (and apparently have) lent to businesses that would get (and have been) turned down with the mainstream banks.

The one example I remember off the top of my head was one seasonal business that built up stock in the winter (and thus wanted to borrow then) to sell in the summer (when they would repay the loan.) Mainstream bank wanted security in the form of invoices (can't remember the term used,) and that was the only option they would offer as security., but since the orders didn't come in until summer, he couldn't provide that security; bank ignored the fact that the stock being built up itself would have repaid the loan 4 times over.

System

I did listen to the programme, have been reading about Handelsbanken for some time.

Yes, I can see how local decision-making could help a business which doesn't fit the mould - but dealing with them must be a bit like appearing on Dragon's Den!

A personal current account, however, is a little more ordinary and not such a risk to the bank.