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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 analyst | Abbey 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." |
Expansion | Expansion |
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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 unchanged | Licences unchanged |
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. |