MSE News: An anatomy of banks: When Martin Lewis met Barclays

SammenForLivet2

I went to Barclays to setup a standing order this morning.

Once complete, they guy on the 'Service/Enquirers' desk, said there was a 'Service Message' saying that they see I have a Mortgage with another bank and was quite pressuring me into booking an appointment with him - even after telling him that I have my mortgage with a local building society and that it's only 1.5% + base rate and that I don't want to switch.


If they aren't incentivesed to sell, then I don't see why this is the case?

Thrugelmir

macfamilyent wrote: »

If they aren't incentivesed to sell, then I don't see why this is the case?

Then accept the fact that in time the UK banks will switch to fees on current accounts. You've gone in branch to set up a standing order which is a cost to the bank. Neither do you generate them any revenue as you buy none of their services. A situation which has to change.

SammenForLivet2

Thrugelmir wrote: »

Then accept the fact that in time the UK banks will switch to fees on current accounts. You've gone in branch to set up a standing order which is a cost to the bank. Neither do you generate them any revenue as you buy none of their services. A situation which has to change.

I'm from South Africa, where we pay for banking, which is fine - but if you bank correctly, (e.g: No cheques, No postal Statements, No lost cards, No Branch Interaction, No Cash Deposits and ATM withdrawals), you can still bank for nearly free (BTW setting up a stop order in branch - the eqv. of a Standing Order is still free in some South African banks).

I never said I don't mind paying for banking - I have the additions active account for over five years (not for much longer) and this has generated them over £1,000 of revenue from my banking, and I'm sure there is some profit there.

JuicyJesus

pqrdef wrote: »

I forgot. You can customise your debit card.

I can also use a very full featured iPad app to do my banking, their branches can produce a debit card for me on the spot should I lose mine, they've been at the forefront of rolling out contactless, their online banking service is excellent and full featured...

Need I go on?

pqrdef

Thrugelmir wrote: »

Then accept the fact that in time the UK banks will switch to fees on current accounts.

The Government is going to break their monopoly on payment services, so if they start charging fees, we'll go back to the old days when most people didn't have a current account and didn't need one.

Thrugelmir wrote: »

Neither do you generate them any revenue as you buy none of their services. A situation which has to change.

They could start by having more services that people want to buy. Their brands, footfall and customer data put them in a brilliant position that many businesses would kill for, but they're totally lacking in imagination when it comes to leveraging it.

They're wedded to the old model of selling in expensive ways and passing the cost on to the customer.. The new wave of internet banks like Egg thought they could sell cheap and pass on the savings, but they failed to think past the vertical paradigm where they only sold a limited range of own-brand products. If they'd integrated something like a comparison site, they could have made more money selling other people's stuff.

Because the comparison sites are where I shop now, after looking at the cashback sites. It's a jungle, and a risky business. I'd go to the bank if I thought they'd be using their knowledge and experience to find me the best deal, or maybe even using their clout to offer me an exclusive even better deal. Instead, they'll want £50 more for house insurance than what Swinton can make a profit on.

Because the bean-counters figure that overcharging mugs is more lucrative. Perhaps they just want to join the hearing aid and electric bed people in the relieve-pensioners-of-their-savings trade.

Archi_Bald

pqrdef wrote: »

Because the comparison sites are where I shop now, after looking at the cashback sites.

I do it the other way round - I first look at comparison sites, then I check whether the best deal is available on a cashback site or whether the cashback site can better the best deal. That way, I stand a fair chance of getting the cashback myself, rather than it going to the comparison site. Of course, if everyone did it like that, the comparison sites couldn't fund themselves, lol.

Thrugelmir

pqrdef wrote: »

The Government is going to break their monopoly on payment services, so if they start charging fees, we'll go back to the old days when most people didn't have a current account and didn't need one.

Days of peoples pay being made in cash are over. So majority of people will require an account of some kind. Even if it's at the most basic of levels.

The amount that's been repaid in PPI compensation clearly illustrates the subsidy of services by cross selling of products. Banks will therefore be looking to maximise revenue by generating income from other sources.

JuicyJesus

pqrdef wrote: »

The Government is going to break their monopoly on payment services

Please forgive me for not being as mature as usual, but LOLWAT?

They could start by having more services that people want to buy. Their brands, footfall and customer data put them in a brilliant position that many businesses would kill for, but they're totally lacking in imagination when it comes to leveraging it.

If nobody wanted to buy their services because they're crap, nobody would. But they do, in droves.

They're wedded to the old model of selling in expensive ways and passing the cost on to the customer.. The new wave of internet banks like Egg thought they could sell cheap and pass on the savings, but they failed to think past the vertical paradigm where they only sold a limited range of own-brand products. If they'd integrated something like a comparison site, they could have made more money selling other people's stuff.

Yes, the profit to be made from a one time sale of a financial product is far more than the ongoing income from actually running one, obviously. That's why commission charging for financial advice was so rare before, because the one off fee they could charge instead was so stunningly profitable.

And it's not like any company wants to build a brand image for themselves as a financial provider, which can pay dividends in the future due to possible customer loyalty, rather than being a reseller for the products of others.

Do you read what you write?

Because the comparison sites are where I shop now, after looking at the cashback sites. It's a jungle, and a risky business. I'd go to the bank if I thought they'd be using their knowledge and experience to find me the best deal, or maybe even using their clout to offer me an exclusive even better deal. Instead, they'll want £50 more for house insurance than what Swinton can make a profit on.

How lovely for you. But that's completely irrelevant, because that's something you can do NOW, and if people choose not to do so for whatever reason, more fool them. The options are available, if you choose to ignore them then whose fault is that?

Except in pqrdef land, because I know EXACTLY whose fault it is there.

Because the bean-counters figure that overcharging mugs is more lucrative. Perhaps they just want to join the hearing aid and electric bed people in the relieve-pensioners-of-their-savings trade.

There is a very simple solution to being overcharged, which is to buy a different product or none at all if you don't feel the value provided is commensurate with the price. It's something we call a "market", it's rather an efficient way of distributing goods and services, when properly regulated.

pmduk

Is this the same government that has spent £10bn on computerising NHS records? Without visible success? I'm sure the banks are quaking in their boots from competition in that quarter.

DomRavioli

Just left Barclays after being a loyal customer for 5 years.

They cancelled my card, put a block on all my accounts, and couldn't tell me why. There was no reason for this to happen, and I am still (2 weeks later) waiting for a reason.

I wouldn't wish them on my worst enemy, even the lovely guy on the phone who closed my accounts for me said if it happened to him he would leave as well.