Virgin Money aims to increase SME banking market share by 40pc

Newly rebranded Virgin Money plans to have 300 relationship managers working in 40 businesses banking centres across Britain

Virgin Money, the new name for the rebranded CYBG, plans to offer SME business banking within branches by next summer.

Virgin Money wants to increase its share of business banking current accounts from 3.5pc today to 5pc.

The new Virgin Money SME business banking service will launch a Virgin Money business account in the first half of 2020. The business account will offer online and mobile services for businesses, including digital account opening, money management tools, fully automated lending and other services such as accountancy and tax management.

Three hundred relationship managers in 40 business banking centres will be established, supporting small and medium-sized businesses. (By comparison, Barclays, which currently has a 24pc share of the business banking market, offers a network of 1,500 relationship managers.)

The bank says that it wants to one of the top three in CMA service quality ranking for business customers.

The move comes as CYBG drops its historic Clydesdale and Yorkshire Bank brands in favour of an all-encompassing Virgin Money.

CYBG says it is still assessing what its eventual SME business banking network will look like. “This is an opportunity for us to look at our network,” the bank said.

However, one signpost is the B Works store – another subsidiary CYBG brand – which opened in Manchester in January offering a co-working space, meeting rooms and even yoga classes.

The newly rebranded Virgin Money has identified an additional £50m of annual cost savings on top of £150m previously as part of its Virgin Money acquisition.

David Duffy, CEO, said: “Banking is changing at an unprecedented rate. Consumers are using new technology in every part of their lives. With amazing customer experiences available in other industries, they are rightly demanding so much more from their banks.

“We have a clear ambition to disrupt the status quo with the new Virgin Money. The new group combines the iconic Virgin brand, with its distinctive and brilliant customer experience, with CYBG’s technology, product expertise and know-how. We believe we have the winning formula that will create a new force in consumer and business banking.”

“Our new financial targets will deliver a significantly more efficient and profitable business with strong and sustainable returns for our shareholders. Despite the ongoing Brexit headwinds and continued competitive pressures, the strength of the combination gives us every confidence we will deliver on our targets.”

Further reading

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Tim Adler

Tim Adler is group editor of Small Business, Growth Business and Information Age. He is a former commissioning editor at the Daily Telegraph, who has written for the Financial Times, The Times and the...

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