TSB is up for sale again

UKX69

Santander closes branches and turn some into non - counter services, yet buy TSB?

EarthBoy

ranciduk said:

If there is platform migration- in your opinion what sort of time scale would you think that a TSB customer would go over to Santander’s IT systems ? Just a ball park figure

a year?

two?

five??

There's no "if" about it; the CFO has already said they're going to migrate TSB to the Santander platform.  This is a separate issue to whether they retire the TSB brand or not. 

I think they'd want the migration completed as soon as possible, so I'd say within the first year. 

EarthBoy

UKX69 said:

Santander closes branches and turn some into non - counter services, yet buy TSB?

They can't buy the customers without buying the branches too, but they will probably close a lot of the branches after merging the business.

steven141

If they are planning on exiting the UK in future it would make sense to rebrand the lot to TSB and then if the bank is sold on they can keep the brand without having to change name again. The problem is whether or not the TSB name is tarnished too much from the IT Meltdown on 2018 or if Santander's bad reputation for customer service is worse.

Personally I've not had an issue with either of them.

GeoffTF

ranciduk said:

WillPS said:

EarthBoy said:

WillPS said:

HillStreetBlues said:

Looks like I've had the last switching reward from TSB as by time I qualify again the brand will be gone.

Santander trades under 3 different brands in the UK. Bit soon to conclude TSB as a brand is going to be squelched.

In this interview, Santander's Chief Financial Officer confirms that TSB will be migrated to the Santander platform. 

Watch Santander CFO Says TSB Brand Has a ‘Lot of Value’ - Bloomberg

When asked if they will do away with the TSB brand, he doesn't actually say one way or the other, he just says they will decide what to do when the merger completes.  However, he says that TSB customers will have access to more branches, which at least implies they will get rid of the brand, unless they follow the Lloyds Banking Group's approach and allow customers of multiple brands to use any of their branches.

Indeed I would expect they would as a bare minimum platform migration - which is consistent with Cahoot and Cater Allen which also use the Santander platform. Neither have branches either. 

Not saying it will or won't happen anyway - Abbey [National] was arguably a better respected brand at the point they flushed that away. Just too soon to be sure.

If there is platform migration- in your opinion what sort of time scale would you think that a TSB customer would go over to Santander’s IT systems ? Just a ball park figure

a year?

two?

five??

The integration is expected to take 2 years, if I remember correctly.

ranciduk

2 years?? Where did you read that?

Olenna

GeoffTF said:

Section62 said:

HillStreetBlues said:

EarthBoy said:

"Asked about closures and job losses, Santander’s UK boss Mike Regnier said: ‘There will be efficiencies that we expect to make.’....

Regnier said TSB was a powerful brand but that ‘typically at Santander we tend to use the Santander brand on the High Street around the world. That’s the approach we normally take.’ "

https://www.thisismoney.co.uk/money/markets/article-14869901/High-St-set-branch-closures-Santander-snaps-rival-TSB-2-9bn-deal.html

Already talking about it in past tense, I would take a brave person to bet that the brand will be about at the end of the decade.

But as Olenna hints at, it could be an equally brave bet that Santander UK will still be here by then.

I do not think it is likely that Santander will leave the UK within ten years after paying a premium price for TSB.

A sale or floatation of the enlarged business is still a very real option. 
None of the key issues that made them consider exit will disappear by simply absorbing TSB.
They paid a premium as they opted to buy at this point with Barclays snapping at their heels.

GeoffTF

ranciduk said:

2 years?? Where did you read that?

One of the reports. I do not remember which one, or how reliable the source was. Santander will not have done much detailed technical planning at this stage anyway. Two years sounds about right though. I expect that it will be much longer before the last TSB debit cards and cheque books disappear from use, judging from what happened when Santander took over Abbey National.

Rob5342

UKX69 said:

Santander closes branches and turn some into non - counter services, yet buy TSB?

It's the customers and their business that hey want, not the branches that nobody uses. 

wmb194

GeoffTF said:

ranciduk said:

2 years?? Where did you read that?

One of the reports. I do not remember which one, or how reliable the source was. Santander will not have done much detailed technical planning at this stage anyway. Two years sounds about right though. I expect that it will be much longer before the last TSB debit cards and cheque books disappear from use, judging from what happened when Santander took over Abbey National.

From the analyst presentation, if the purchase completes in Q1 26 and the plan is to have the integration completed in 2028 two years looks about right. I doubt Abbey will be the benchmark as A&L and B&B both disappeared very quickly. TSB is a weak brand anyway.



https://www.londonstockexchange.com/news-article/BNC/presentation-to-analysts-about-transaction-on-tsb/17114285