Branson to bring "simplicity" to banking
By Elliot Wright, 8th January 2010
Virgin Money launched its bid to revolutionise the retail
banking sector after making a major step towards becoming a High
Street bank.
The company, part of Richard Branson's Virgin empire, has agreed
to purchase regional bank Church House Trust and will use the bank
as a platform to provide savings and mortgage products to customers
under the Virgin Money brand.
Branson has stated his intention to bring simplicity to the
traditionally complex UK banking market.
The retail banking sector has been thrown into chaos by the
credit crunch, with nationalisation and publically-funded bailouts
causing dismay amongst consumers, while other controversial issues
such as unfair overdraft charges have meant that trust in High
Street banks is at an all-time low.
Virgin Money will provide a better,
different form of banking to its customers, increasing competition
in the sector
"The financial crisis has tarnished the reputation of many UK
banks," Virgin Money chief executive Jayne Anne Gadhia said
today.
"Virgin Money will provide a better, different form of banking
to its customers, increasing competition in the sector."
Gadhia added: "Our approach to banking is founded on developing
a sustainable, savings-based business. We see the acquisition of
Church House Trust as a strong and sensible first step in
delivering Virgin Money's banking ambition."
The chairman of Church House Trust, David Batten, said the deal
was good news for its shareholders and customers.
"Church House Trust's conservative business model has proven to
be attractive to Virgin Money as a sound base from which to fulfill
its banking ambitions," he said.
Virgin Money, which has more than 2.5m customers and already
offers financial services such as credit cards, savings accounts
and insurance products, has been looking for a way into the retail
banking sector for some time, failing in a bid to buy Northern Rock
two years ago.
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