Nationwide take over of Virgin Money

Hoenir

Money_Grabber13579 said:

Mikael Armstrong claims to have been debanked by Nationwide as a result of the proposed virgin takeover, despite being told that he needed to move all his accounts before the takeover was announced!

You reap what you sow. 

WillPS

Armstrong directed a spotlight to himself. I would guess that under that light somebody in the society spotted a possible breach of T&Cs (possibly something that looks like business usage, based on Nationwide closures reported on here, but could be anything).

Very limited sympathy if that's the case.

Also, have his accounts actually been closed? The article claims they have but only details the date they were frozen (in April).

landsberger64

Bear in mind also that, were Nationwide to wish to retain the Virgin branding, they’d have to pay a hefty licensing fee to Mr Branson. Which I assume they are keen to avoid

WillPS

landsberger64 said:

Bear in mind also that, were Nationwide to wish to retain the Virgin branding, they’d have to pay a hefty licensing fee to Mr Branson. Which I assume they are keen to avoid

They've agreed a four year license, which when combined with the 2-year run out means they will have 6 years from the date the transaction completes.

6 years is a pretty generous integration period for all the equivalent natural Nationwide products (current accounts, savings and mortgages at least). Anything left with Clydesdale Bank plc. after that will be rebranded (perhaps as Clydesdale!).

King_Of_Fools

WillPS said:

landsberger64 said:

Bear in mind also that, were Nationwide to wish to retain the Virgin branding, they’d have to pay a hefty licensing fee to Mr Branson. Which I assume they are keen to avoid

They've agreed a four year license, which when combined with the 2-year run out means they will have 6 years from the date the transaction completes.

6 years is a pretty generous integration period for all the equivalent natural Nationwide products (current accounts, savings and mortgages at least). Anything left with Clydesdale Bank plc. after that will be rebranded (perhaps as Clydesdale!).

If they want to retain the ability to print Scottish banknotes they will need to maintain the Clydesdale banking licence even if they do not keep the high street retail brand (as Virgin Money have done).

WillPS

King_Of_Fools said:

WillPS said:

landsberger64 said:

Bear in mind also that, were Nationwide to wish to retain the Virgin branding, they’d have to pay a hefty licensing fee to Mr Branson. Which I assume they are keen to avoid

They've agreed a four year license, which when combined with the 2-year run out means they will have 6 years from the date the transaction completes.

6 years is a pretty generous integration period for all the equivalent natural Nationwide products (current accounts, savings and mortgages at least). Anything left with Clydesdale Bank plc. after that will be rebranded (perhaps as Clydesdale!).

If they want to retain the ability to print Scottish banknotes they will need to maintain the Clydesdale banking licence even if they do not keep the high street retail brand (as Virgin Money have done).

Virgin Money kept and continue to exclusively use the Clydesdale Bank plc license - they just trade as Virgin Money. Nationwide will certainly retain the bank license - it's one of the main benefits they'll get from the purchase! Whether they use a variation of their own brand, Clydesdale Bank or something else remains to be seen; but yes I imagine the legal entity will remain Clydesdale Bank plc for note printing purposes!

changearound1

WillPS said:

King_Of_Fools said:

WillPS said:

landsberger64 said:

Bear in mind also that, were Nationwide to wish to retain the Virgin branding, they’d have to pay a hefty licensing fee to Mr Branson. Which I assume they are keen to avoid

They've agreed a four year license, which when combined with the 2-year run out means they will have 6 years from the date the transaction completes.

6 years is a pretty generous integration period for all the equivalent natural Nationwide products (current accounts, savings and mortgages at least). Anything left with Clydesdale Bank plc. after that will be rebranded (perhaps as Clydesdale!).

If they want to retain the ability to print Scottish banknotes they will need to maintain the Clydesdale banking licence even if they do not keep the high street retail brand (as Virgin Money have done).

Virgin Money kept and continue to exclusively use the Clydesdale Bank plc license - they just trade as Virgin Money. Nationwide will certainly retain the bank license - it's one of the main benefits they'll get from the purchase! Whether they use a variation of their own brand, Clydesdale Bank or something else remains to be seen; but yes I imagine the legal entity will remain Clydesdale Bank plc for note printing purposes!

Is note printing worth much to Clydesdale? They have to have assets equal to any notes they print and then there's the printing costs and associated security. RBS and BoS get lots of advertising for doing it but now Clydesdale is no longer a brand, what's in it for them?

On another point, does anybody think the CMA inquiry is more than a box ticking exercise? The proposed takeover won't make Nationwide the biggest bank or mortgage lender so I wouldn't have thought they have much to worry about.

WillPS

changearound1 said:

WillPS said:

King_Of_Fools said:

WillPS said:

landsberger64 said:

Bear in mind also that, were Nationwide to wish to retain the Virgin branding, they’d have to pay a hefty licensing fee to Mr Branson. Which I assume they are keen to avoid

They've agreed a four year license, which when combined with the 2-year run out means they will have 6 years from the date the transaction completes.

6 years is a pretty generous integration period for all the equivalent natural Nationwide products (current accounts, savings and mortgages at least). Anything left with Clydesdale Bank plc. after that will be rebranded (perhaps as Clydesdale!).

If they want to retain the ability to print Scottish banknotes they will need to maintain the Clydesdale banking licence even if they do not keep the high street retail brand (as Virgin Money have done).

Virgin Money kept and continue to exclusively use the Clydesdale Bank plc license - they just trade as Virgin Money. Nationwide will certainly retain the bank license - it's one of the main benefits they'll get from the purchase! Whether they use a variation of their own brand, Clydesdale Bank or something else remains to be seen; but yes I imagine the legal entity will remain Clydesdale Bank plc for note printing purposes!

Is note printing worth much to Clydesdale? They have to have assets equal to any notes they print and then there's the printing costs and associated security. RBS and BoS get lots of advertising for doing it but now Clydesdale is no longer a brand, what's in it for them?

On another point, does anybody think the CMA inquiry is more than a box ticking exercise? The proposed takeover won't make Nationwide the biggest bank or mortgage lender so I wouldn't have thought they have much to worry about.

It's an interesting question - I dunno is the long and short of it. Presuming the laws aren't radically with the NI licenses, there is recent precedent for getting notes rebranded as Danske did exactly that with their Northern Bank notes; you'd have thought Virgin bank notes (and all the long-lasting advertising) would have been something Branson craved that said.

Of course, if Nationwide decide to rebrand whatever's left of Virgin Money (perhaps the business banking, investment and credit card products) as Clydesdale then once again the marketing potential of those notes comes back in to play.

Eagre to see how it all happens. But just another switch incentive before you go please, Virgin Money, cash or rewards rather than interest this time!

Very much doubt the CMA will have a concern, personally. It doesn't buy them in to #1 spot in any market that I can see, even mortgages they'd still be behind LBG.

steven141

I personally would like to see the Clydesdale Bank brand brought back in some form.

gary1312

steven141 said:

I personally would like to see the Clydesdale Bank brand brought back in some form.

Same here with Yorkshire Bank, although unlikely as YB, iirc, was eventually only a trading name of Clydesdale even before the VM deal.