Co-op bank for sale

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  • Zanderman
    Zanderman Posts: 4,697 Forumite
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    aurion22 wrote: »
    That's what I was afraid of. Have just opened a current a/c with the Halifax, following research on MSE. Sad to be leaving SMILE .. for the name, if nothing else. I always found them efficient & helpful.

    No need to leave Smile if the buyer bank keeps the brand. And the buyer might be just as efficient and helpful.

    Just because Co-op and smile are being sold it doesn't necessarily mean they cease to exist.

    Wait and see before deciding.
  • antrobus
    antrobus Posts: 17,386 Forumite
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    SPalin wrote: »
    I don't think they 'bought' anything when it came to Britannia.
    They got the Building Society for free :p

    Back in 2009, the deal was presented as a merger, which was going to create a "super-mutual" that would buy up other mutuals and "create a new way of doing business in British financial services". Only yesterday the FT stated that the "Co-op Bank acquired the Britannia building society", because that's what happened in 2009 as a matter of law; the Britannia Building Society ceased to exist on the 1st August 2009, when all its assets and liabilities were transferred to the Co-Op.

    The Co-Op might well not have paid anything for the privilege back in 2009 (in the sense of making 'windfall' payments to Britannia members) but it bl00dy well paid for it later, when it realised the extent of the bad debts. In fact the price it paid turned out to be so big, that it bought the bank to its knees.

    Britannia and Co-operative to create £70bn 'super-mutual
    https://www.theguardian.com/business/2009/jan/21/britannia-cooperative-banks-building-societies

    Co-op Bank saved Britannia Building Society from collapse, regulator says
    https://www.theguardian.com/business/2014/feb/11/co-op-bank-britannia-building-society

    Co-op Bank up for sale but questions raised over who would buy
    https://www.ft.com/content/267ae63e-f1e7-11e6-95ee-f14e55513608
  • Anthorn
    Anthorn Posts: 4,362 Forumite
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    No it didn't. Why would somebody give the Co-op a shed load of cash?

    Why wouldn't they? 4 million customers are probably not to be sneezed at.
    I get that. Are they big enough to buy it and capitalise it?

    .My point about financial backing flew over your head yet again
    They've lost a fortune.

    Debateable: Was it Co-op Bank or Co-op group who lost it?
    LBG have a weak market share in cards. They have a string market share in current accounts, savings, loans and mortgages.

    Are there any string European banks who aren't already in the uk?

    There's not a hope in hell of them getting regulatory approval from within the UK or the EU.

    You obviously have the power of foresight. Hold on I'll give it a try yet again: Om ... Om ... Om ... nope not working. I have to repeat yet again: It's all speculation. We don't even have the proposal of the sale. What if no-one wants it and the hedge want to asset strip it? Good for a debate though but that's not to say this debate is good!
  • PeacefulWaters
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    Anthorn wrote: »
    Why wouldn't they? 4 million customers are probably not to be sneezed at.



    .My point about financial backing flew over your head yet again



    Debateable: Was it Co-op Bank or Co-op group who lost it?



    You obviously have the power of foresight. Hold on I'll give it a try yet again: Om ... Om ... Om ... nope not working. I have to repeat yet again: It's all speculation. We don't even have the proposal of the sale. What if no-one wants it and the hedge want to asset strip it? Good for a debate though but that's not to say this debate is good!

    Nothing went over my head. It's just your side of the debate seems to be in lala land.
  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
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    Anthorn wrote: »
    Why wouldn't they? 4 million customers are probably not to be sneezed at.
    There are a heck of a lot of cheaper options to acquire 4m customers than buying an ailing bank.
  • PeacefulWaters
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    Archi_Bald wrote: »
    There are a heck of a lot of cheaper options to acquire 4m customers than buying an ailing bank.

    I liked the idea of somebody giving the Co-op group the money so that they could buy back those customers for themselves!
    Co-operative Group if they have or can get the financial backing
  • Anthorn
    Anthorn Posts: 4,362 Forumite
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    Archi_Bald wrote: »
    There are a heck of a lot of cheaper options to acquire 4m customers than buying an ailing bank.

    Which cheaper options are they? List them!
  • Stuart_W
    Stuart_W Posts: 1,737 Forumite
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    edited 15 February 2017 at 10:09PM
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    aurion22 wrote: »
    Sad to be leaving SMILE .. for the name, if nothing else. I always found them efficient & helpful.

    :(
    Save

    Indeed. I joined smile in 1999 when they launched. Outstanding customer service ever since. A bank that just seems to work.

    You never know, the new owners might keep the smile brand. If it is a stand-alone purchaser with no ambitions to merge into another entity, either the smile or Britannia brands are more likely to be long term options and not the Co-op name, as a 100% privately owned bank is unlikely to be able to keep that name. I guess it depends what the new owners believe existing customers will be happiest with if a name change is forced upon them.

    Keeping smile and becoming an online only bank justifies getting rid of all the branches I suppose. With instant post office access (cash deposits appear immediately) and good online and telephone servicing, no branch network isn't going to be a big deal for the majority of customers. For those it is, they are the most expensive customers to service and the new owners probably won't mind if they walk. Branch closures have really sped up a pace now, and online banking has finally become the norm. I would be very surprised if the branches remain, whether it is a new entity or existing bank that buys Co-op.
  • antrobus
    antrobus Posts: 17,386 Forumite
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    Stuart_W wrote: »
    Indeed. I joined smile in 1999 when they launched. Outstanding customer service ever since. A bank that just seems to work.

    You never know, the new owners might keep the smile brand. If it is a stand-alone purchaser with no ambitions to merge into another entity, either the smile or Britannia brands are more likely to be long term options and not the Co-op name, as a 100% privately owned bank is unlikely to be able to keep that name. I guess it depends what the new owners believe existing customers will be happiest with if a name change is forced upon them.

    Keeping smile and becoming an online only bank justifies getting rid of all the branches I suppose. With instant post office access (cash deposits appear immediately) and good online and telephone servicing, no branch network isn't going to be a big deal for the majority of customers. For those it is, they are the most expensive customers to service and the new owners probably won't mind if they walk. Branch closures have really sped up a pace now, and online banking has finally become the norm. I would be very surprised if the branches remain, whether it is a new entity or existing bank that buys Co-op.

    The Co-Op Bank isn't that keen on Smile anymore. This is what they said in 2015;

    "The Smile brand still exists, but the intention going forward is we will acquire [customers] into one brand which will be the Co-operative Bank".

    And I'm not convinced there is any value in the Britannia brand. The Co-Op certainly think so; they are moving to a "single Co-operative Bank brand".

    The problem with the sale of the Co-Op Bank is this; it has an ethical policy. This might well be a reason why people chose to bank with them, but it's likely to put a lot of buyers off.

    I think that people should consider the possibility that no one will want to buy the Co-Op 'as is'. It will be sold off in bits and pieces and would down.
  • JuicyJesus
    JuicyJesus Posts: 3,830 Forumite
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    antrobus wrote: »
    The Co-Op Bank isn't that keen on Smile anymore. This is what they said in 2015;

    "The Smile brand still exists, but the intention going forward is we will acquire [customers] into one brand which will be the Co-operative Bank".

    And I'm not convinced there is any value in the Britannia brand. The Co-Op certainly think so; they are moving to a "single Co-operative Bank brand".

    The problem with the sale of the Co-Op Bank is this; it has an ethical policy. This might well be a reason why people chose to bank with them, but it's likely to put a lot of buyers off.

    I think that people should consider the possibility that no one will want to buy the Co-Op 'as is'. It will be sold off in bits and pieces and would down.

    Honestly I'm surprised Smile is still a going concern at all. Always struck me as First Direct for people who didn't want a black debit card. Nothing wrong with them per se but they don't really seem to have a USP over just being with the Co-op.
    urs sinserly,
    ~~joosy jeezus~~
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