Branchless bank launches in Wolverhampton
A bank launching in Wolverhampton is planning to take on the high street giants - without opening a single branch.
Charter Savings Bank is being launched at Wolverhampton Business Park, near junction 2 of the M54. It is part of Charter Court Financial Services which employs 250 people.
The bank, which is set to be running by the end of March, will offer instant access and longer term savings accounts as well as savings bonds.
But it will be online and call centre only, open seven days a week.
The move is in stark contrast to Metro Bank, which was the first bank in a century to gain a full banking licence in 2010, which did open branches.
It will mean a bank based in Wolverhampton, rather than the City of London, taking on the likes of HSBC, Barclays, Lloyds/Halifax and RBS/Natwest. Between them the 'big four' hold 77 per cent of the personal current account market.
Ian Lonergan, chief executive of CCFS, will take overall control of running the new bank.
He said: "We see the development of a retail banking proposition as a logical extension for our business, enabling it to diversify into new markets and build a sustainable and competitive business model for the future.
Being granted this licence demonstrates the strength of our offering and the ambitious plans we have to champion savers and help them realise their financial goals."
Paul Whitlock, formerly director of savings at Shawbrook Bank, has been appointed director of savings. He said: "We will bring competitive rates and excellent, reliable service to a customer base which has too often been taken for granted by high street banks. A significant number of savers are dissatisfied and feel unrewarded in today's economic climate and we intend to provide new options that meet their needs.
"It's high time, in what has become a listless market, that straightforwardness and robust rates are re-introduced to the market."
Challenger banks are now on the rise after regulators eased the requirements for new lenders.
Consumers are being encouraged to shop around as the big banks are still tainted by the financial services crash of 2008.
