Co-op bank personal loans

Stuart_W

A few months after withdrawing from direct-sale mortgages, Co-op bank seem to have now quietly withdrawn from personal loans completely.

Seems like an odd move, would have thought these were profitable
Looks like the new owners are continuing their streamlining (and shrinking) of the bank to work back towards profitability.

Not aware of other personal banks that don't do personal loans
Seems like an important key role of a bank.

Just wondering what's going next. The clock is definitely ticking on my Co-op members credit card, or at least the cashback element anyway.

[Deleted User]

I don't think they've been competitive on loans for a long time, and I don't think they have the risk appetite to go lower on rate.

antrobus

Stuart_W wrote: »

A few months after withdrawing from direct-sale mortgages, Co-op bank seem to have now quietly withdrawn from personal loans completely.

Seems like an odd move, would have thought these were profitable...

Don't know. I have no access to their management accounts.

But it's not necessarily a question of them not being profitable; they might be less profitable than the alternatives.

Stuart_W wrote: »

Looks like the new owners are continuing their streamlining (and shrinking) of the bank to work back towards profitability.

Not aware of other personal banks that don't do personal loans
Seems like an important key role of a bank.

Just wondering what's going next. The clock is definitely ticking on my Co-op members credit card, or at least the cashback element anyway.

Well, the new owners have to do something. The bank made an operating loss of £234m in 2017. Granted that's less than the £477m loss in the previous year, but it's not the sort of thing you can carry on doing.

Stuart_W

Deleted_User wrote: »

I don't think they've been competitive on loans for a long time, and I don't think they have the risk appetite to go lower on rate.

I think that's about right. They've obviously decided keeping uncompetitive loans for existing customers isn't worth while. The days of your first port of call for a loan being your own bank are long gone I suppose (well definitely gone in my case!)

I wouldn't be surprised if a total withdrawal from branches is next - which might sound dramatic but with no loans or mortgages to arrange in branch, not actually much any branch can do that a post office can't.