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Santander scraps UK bank brands Santander scraps UK bank brands
(30 minutes later)
Spanish banking giant Santander is to rebrand all of its major UK High Street brands - Abbey, Alliance & Leicester and Bradford & Bingley.Spanish banking giant Santander is to rebrand all of its major UK High Street brands - Abbey, Alliance & Leicester and Bradford & Bingley.
A total of 1,300 branches will have their names changed to Santander by the end of 2010, in a £12m move.A total of 1,300 branches will have their names changed to Santander by the end of 2010, in a £12m move.
Any customer of Abbey, Alliance & Leicester or Bradford & Bingley savings will be able to carry out transactions in any of Santander's UK branches.Any customer of Abbey, Alliance & Leicester or Bradford & Bingley savings will be able to carry out transactions in any of Santander's UK branches.
Santander is the second-biggest banking group in the world after HSBC.Santander is the second-biggest banking group in the world after HSBC.
'Trust''Trust'
It said it hoped to save about £180m by integrating the three businesses, and that the overhaul reflected the group's policy to operate under a single brand - which is already found in more than 40 countries.It said it hoped to save about £180m by integrating the three businesses, and that the overhaul reflected the group's policy to operate under a single brand - which is already found in more than 40 countries.
Santander has already incorporated its flame logo into the Abbey branding, and it said that customer feedback suggested its brand would be welcomed in the UK.Santander has already incorporated its flame logo into the Abbey branding, and it said that customer feedback suggested its brand would be welcomed in the UK.
ABBEY 1849: National Freehold Land and Building Society formed. Merged with the Abbey National Building Society in 1944 to form Abbey National1989: Became first building society to float on London stock exchange2004: Bought by Santander in 2004 - ditching the Abbey umbrella logoBest known ad slogan: "Get the Abbey habit"ABBEY 1849: National Freehold Land and Building Society formed. Merged with the Abbey National Building Society in 1944 to form Abbey National1989: Became first building society to float on London stock exchange2004: Bought by Santander in 2004 - ditching the Abbey umbrella logoBest known ad slogan: "Get the Abbey habit"
"Customers trust us as a global brand and they feel very safe about their savings," said António Horta-Osório, chief executive of Santander's UK businesses."Customers trust us as a global brand and they feel very safe about their savings," said António Horta-Osório, chief executive of Santander's UK businesses.
"It's important for customers who travel around the UK to have 1,300 branches to transact with - and they will have the same product and the same people facing them in the branches.""It's important for customers who travel around the UK to have 1,300 branches to transact with - and they will have the same product and the same people facing them in the branches."
The move would also allow the UK business to use the "expertise and product developments from Santander's global business," he added.The move would also allow the UK business to use the "expertise and product developments from Santander's global business," he added.
The first name changes will begin in June, with Abbey credit cards being rebranded, while the renaming of branches will begin next year, with Abbey and B&B first to be overhauled.The first name changes will begin in June, with Abbey credit cards being rebranded, while the renaming of branches will begin next year, with Abbey and B&B first to be overhauled.
Abbey staff will be upset and there will be a potential loss of customers Leigh GoodwinBanking analystAbbey staff will be upset and there will be a potential loss of customers Leigh GoodwinBanking analyst
However despite the savings it anticipates making, banking analyst Leigh Goodwin said that the policy was a risk and, in his view, a mistake.However despite the savings it anticipates making, banking analyst Leigh Goodwin said that the policy was a risk and, in his view, a mistake.
"Abbey has good value as a trusted brand in the mortgage and savings arena," he said."Abbey has good value as a trusted brand in the mortgage and savings arena," he said.
"Staff will be upset and there will be a potential loss of customers.""Staff will be upset and there will be a potential loss of customers."
ExpansionExpansion
Santander is already a familiar brand outside the UK. Advertisement
Santander exec explains rebrand
Santander gained a foothold in the UK banking market in 2004 after buying Abbey for about £8bn, in Europe's biggest cross-border bank takeover.Santander gained a foothold in the UK banking market in 2004 after buying Abbey for about £8bn, in Europe's biggest cross-border bank takeover.
The deal offered Santander control of Britain's second-largest mortgage lender, with 741 branches and 18 million customers.The deal offered Santander control of Britain's second-largest mortgage lender, with 741 branches and 18 million customers.
The Spanish bank saw further expansion opportunities in 2008, as some UK banks were severely threatened by the global financial crisis.The Spanish bank saw further expansion opportunities in 2008, as some UK banks were severely threatened by the global financial crisis.
ALLIANCE & LEICESTER 1852: Leicester Permanent Benefit Society formed - creating the origins of A&L1985: A&L formed by merger between the Alliance Building Society and Leicester Building Society1990: Buys Girobank - the first time a building society had bought a clearing bank2008: Share price slumps due to the credit crunch. Santander buys the firmBest known ad slogan: "Be a smarter investor with Alliance & Leicester"ALLIANCE & LEICESTER 1852: Leicester Permanent Benefit Society formed - creating the origins of A&L1985: A&L formed by merger between the Alliance Building Society and Leicester Building Society1990: Buys Girobank - the first time a building society had bought a clearing bank2008: Share price slumps due to the credit crunch. Santander buys the firmBest known ad slogan: "Be a smarter investor with Alliance & Leicester"
It bought Alliance & Leicester in a £1.3bn deal aimed at reducing funding pressures on the UK bank and strengthening Santander's local business.It bought Alliance & Leicester in a £1.3bn deal aimed at reducing funding pressures on the UK bank and strengthening Santander's local business.
In September, the UK's biggest lender to landlords, Bradford & Bingley, was taken over by the government after the credit crisis had shut off its funding.In September, the UK's biggest lender to landlords, Bradford & Bingley, was taken over by the government after the credit crisis had shut off its funding.
Santander stepped in and paid £612m to take control of 197 Bradford & Bingley branches and £20bn in deposits.Santander stepped in and paid £612m to take control of 197 Bradford & Bingley branches and £20bn in deposits.
Bradford & Bingley still exists as an entity and is owned by the Treasury.Bradford & Bingley still exists as an entity and is owned by the Treasury.
Santander is already a familiar brand outside the UK.
Santander's specialist brands, including the internet bank Cahoot, will retain their identities.Santander's specialist brands, including the internet bank Cahoot, will retain their identities.
Licences unchangedLicences unchanged
BRADFORD & BINGLEY 1851: Bradford Second Equitable Building Society and the Bingley, Morton and Shipley Permanent Benefit Building Society both formed1964: Bradford and Bingley complete merger2000: B&B demutualised and shares floated on London stock exchange2008: Part-nationalised after being engulfed by economic crisis. Santander buys its branches and retail deposit accounts Best known for: Bowler-hat wearing Mr Bradford and Mr Bingley
UK banks owned by Santander currently operate under two banking licences.UK banks owned by Santander currently operate under two banking licences.
One covers Abbey, Bradford & Bingley and Cahoot. The other relates to Alliance & Leicester.One covers Abbey, Bradford & Bingley and Cahoot. The other relates to Alliance & Leicester.
BRADFORD & BINGLEY 1851: Bradford Second Equitable Building Society and the Bingley, Morton and Shipley Permanent Benefit Building Society both formed1964: Bradford and Bingley complete merger2000: B&B demutualised and shares floated on London stock exchange2008: Part-nationalised after being engulfed by economic crisis. Santander buys its branches and retail deposit accountsBest known for: Bowler-hat wearing Mr Bradford and Mr Bingley
This means that savers are 100% covered by the Financial Services Compensation Scheme for up to £50,000 across Abbey, B&B and Cahoot combined. In addition, they are also covered for up to a further £50,000 with A&L.This means that savers are 100% covered by the Financial Services Compensation Scheme for up to £50,000 across Abbey, B&B and Cahoot combined. In addition, they are also covered for up to a further £50,000 with A&L.
Santander says this will remain the case up until at least mid-2010, because Abbey and B&B are being rebranded first - meaning that A&L will still be running as a separate business under its own name and its own licence.Santander says this will remain the case up until at least mid-2010, because Abbey and B&B are being rebranded first - meaning that A&L will still be running as a separate business under its own name and its own licence.