Virgin to merge with Clydesdale & yorkshire

AirlieBird

LesU wrote: »

What I'm more worried about is the possible merger of computer systems. Is this going to end up as TSB 2?

Unlikely as under the proposal it is existing systems that will be used and they are avoiding large scale migrations. All Virgin Money products and customers will be moved on to CYBG's iB platform except for credit cards where CYBG accounts will move on to VM's platform which will be integrated into the combined bank's systems. Migration will happen in several phases "aligned to transactional events". This means for most mortgages and cash ISAs, accounts will move across on product renewal at maturity. Personal and business savings accounts will be migrated in an automatic transfer. It is estimated around 30% of accounts will be migrated using automatic transfers. Options are being looked at to migrate VM current accounts, including using CASS.

RG2015

This was in the Guardian:

But it is no surprise to see that the clearest winner will be Sir Richard Branson s Virgin Enterprises, owner of the Virgin Money brand. Virgin Money was paying £8m annually for the licence, but the sum under CYBG will rise to £12m and then to £15m, or more if turnover targets are met. One can admire Branson s skill in pushing his brand deeper into financial services, first with the Northern Rock deal, now with CYBG. Alternatively, it is depressing that, even in an age of supposed technological revolution, CYBG feels the need to write a fat cheque every year to the bearded one in order to get noticed. From the point of the banking beasts, the competitive landscape still looks solid.

Can someone explain who is paying whom the £8m and then the £12m?

https://www.theguardian.com/business/nils-pratley-on-finance/2018/jun/19/no-surprise-who-is-clear-winner-of-17bn-virgin-money-takeover-richard-branson

RG2015

I have found out the answer which is as follows:

Virgin Money pays Virgin Enterprises an annual royalty of about £8m for using the brand, or 1% of revenues. The same basic formula is expected to be applied to the enlarged group, meaning it would eventually pay Virgin about £17m a year.

And all because I (and a few others) bought albums by mail order from Virgin Records in the early 70s.

RG2015

supasaverbob wrote: »

I wonder if this will lead to Virgin Money banknotes in Scotland...?

And I really thought this was a joke. :doh:

CITY DIARY: Virgin Money begins issuing banknotes

http://www.thisismoney.co.uk/money/comment/article-5862259/CITY-DIARY-Virgin-Money-begins-issuing-banknotes.html