NEWS
IBS Journal July 2018
9
Don’t chuck the customers out with the branch closures, banks warned
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ank and building society branches are closing at a rate of almost 60 a month, according to a report by Which? Money research. But one expert has warned the banks not to close the window on service when they go online. “Banks need to be sure the shift to online banking doesn’t leave customers behind,” warned Tim Dimond-Brown, VP of sales and operations at Quadient.
Since 2015, 2,868 retail branches in the UK have either closed or will do by the end of this year. This, says Which? Money, is depriving customers and local communities of many essential services. With ATMs disappearing the branch closures have a devastating impact on the 2.7 million adults who live on cash.
Closures were not spread evenly across the UK. Scotland was the worst hit of the UK regions, suffering 368 branch losses. The South East and the South West suffered 361 and 327 losses respectively.
banks shut the doors, they shut the customers out too, he said.
NatWest has closed the most branches since 2015, with 638 shut or scheduled to shut by the end of this year. This is followed by HSBC with 440, Lloyds with 366 and Royal Bank of Scotland with 350. Natwest and Royal Bank of Scotland, both part of the RBS Group, have reported that mobile transactions have risen by 78%.
The decision is clearly commercial with no regard for the effect on community, according to Which? Money expert Gareth Shaw. When
Branches are closing because 71% of adults used online banking in 2017. Meanwhile, 22 million people used mobile banking apps. A TNS survey of more than 2,000 UK adults found that 38 percent hadn’t visited their local bank for six months or longer.
“The banks that communicate with customers in the right way will emerge with more satisfied and loyal customers,” said Dimond-Brown.
Flexiti Financial buys $250m of TD’s private label credit card portfolio
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oint of sale financing platform Flexiti Financial has bought TD Financing Services’ (TDFS) Canadian private label credit card portfolio for a figure mooted to be $250 million.
Flexiti financed the transaction with $350 million in credit facilities offered by Credit Suisse AG, Cayman Islands Branch, and a syndicate of mezzanine lenders. Globalive Capital, a founding investor in Flexiti, also led an equity round of more than $50 million. This gives them a controlling position over Flexiti.
The acquisition gives Flexiti more than one million new credit card customers. It also brings 900 new merchant locations – which are currently offering TDFS credit card financing – to Flexiti’s client base. Since being founded in 2013, Flexiti has provided big-ticket retailers with point of sale financing. Its systems establish a dedicated line of
credit by creating a virtual private label card for customers with low or no-interest financing.
“Our retailers are our partners, and we put them at the core of everything we do,” said Peter Kalen, founder and CEO of Flexiti. “This acquisition positions us as one of the largest consumer lenders in the country with a cardholder base of more than one million Canadians.”
Flexitime has capitalised on the fact that businesses need alternative financing options that suit their customers’ lifestyles or needs, said Anthony Lacavera, founder and chairman of Globalive Capital. “Flexiti is uniquely positioned to capitalise on this growing market trend. This investment aligns with Globalive Capital’s core principle of finding companies and entrepreneurs that are breaking down barriers and challenging the status quo,” he said.
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