Co-op to pull out of banking - completely

anoncol

Scaremongering

ChiefGrasscutter

opinions4u wrote: »

The Verde branches will be a very good buy for somebody. If there's a somebody who can afford it.

...but do banks etc really want more "bricks and mortar" places?
The risk with the whole business as I've said before is that a large proportion of the Lloyds customers in those branches to be sold off simply migrate their accounts back to Lloyds.
This will leave the purchaser of the Verde group with just a load of buildings and accounts of those who couldn't be bothered or worse still accounts which LLoyds declined to migrate ('cos they were 'trouble').

dr_adidas01

ChiefGrasscutter wrote: »

...but do banks etc really want more "bricks and mortar" places?
The risk with the whole business as I've said before is that a large proportion of the Lloyds customers in those branches to be sold off simply migrate their accounts back to Lloyds.
This will leave the purchaser of the Verde group with just a load of buildings and accounts of those who couldn't be bothered or worse still accounts which LLoyds declined to migrate ('cos they were 'trouble').

I think some banks do hence why Co-Op were looking to buy them, as they don't have a lot of branches and there not always in convenient places.

I personally will have accounts with Lloyds and the new TSB bank as my old account is staying with Lloyds and the one I opened a year and a half ago is being sold off.

I don't know why when I opened the new account I ended up with a different sortcode to my original branch, but I did. Perhaps it was some sort of omen if you believe in such things.

opinions4u

ChiefGrasscutter wrote: »

...but do banks etc really want more "bricks and mortar" places?

Branch banking remains profitable for them.

The risk with the whole business as I've said before is that a large proportion of the Lloyds customers in those branches to be sold off simply migrate their accounts back to Lloyds.

The overwhelming majority of people can't be bothered to chase free fivers, best buy savings rates etc. So I can't see significant numbers shifting back.

There'll be the odd muttering on forums, but nothing significant to affect the business model to any degree.

datostar

Addiscomber wrote: »

Oh dear!!
Where would the Labour Party get a massive overdraft from if The Co-op did pull out of banking?

Wonga are in discussions with the Co-op to take over the overdraft facility. R.Peston

System

Is that the 3 evil looking Wonga puppets?

datostar wrote: »

Wonga are in discussions with the Co-op to take over the overdraft facility. R.Peston

Thrugelmir

opinions4u wrote: »

Years of it have chipped away at smaller players. We've gone from over 600 building societies to less than 50. Regulation adds a cost burden that is, for any things, the same for a giant like Lloyds as it is for a minnow one branch building society.

Technology has changed banking. Volume has made for cost efficiency.

Increased regulation costs is effectively a % of profit. So severely impacts the smaller players. Even the NW got hit when financing the Icelandic bail out levy with annual profits down by 69% in 2009.