Bank wants to give staff opportunities
CYBG HAS TAKEN OVER VIRGIN MONEY IN A £1.7BN DEAL
BANKING giant CYBG says it wants to “increase opportunities” for its new staff in Newcastle after formally completing its £1.7bn takeover of Virgin Money.
The combined group aims to challenge the Big Five of the UK banking market and has assets of around £84bn, plus more than six million customers.
That size makes it easily the largest “challenger” bank, though it still has some way to go to come close to the established big players on the UK High Street.
The group will look to cut around 1,500 jobs as it seeks to make savings of around £120m but has committed to keeping a base in Gosforth for at least three years, as well as continuing Virgin Money’s support for the Virgin Money Foundation and for the Women in Finance Charter.
Chief executive David Duffy visited staff at Gosforth yesterday, and played down the threat of job losses.
He said: “There’s a huge optimism about the future. Both banks coming together is unique.
“The offering we have is for SMEs and retail, so that’s every single product and service. The technology that we have is something people are pretty excited about.
“We’re the only bank outside the big five that can deliver real competition. While we may do some things around costs ultimately this is a growing bank. That’s our ambition and we would look to increase opportunities, in terms of careers, for almost all of the staff.” The combination of CYBG with Virgin Money brings together CYBG’s strengths in personal and business banking with Virgin Money’s strong mortgage and credit card operations.
Former Virgin Money chief executive Jayne-Anne Gadhia has stepped down, but agreed to remain available as a senior advisor for the next 18 months.
Virgin Money finance chief Peter Bole joins the new bank as group integration director while managing director Hugh Chater has also joined the CYBG leadership team.
Mr Duffy said: “Today marks an historic milestone for CYBG and Virgin Money, creating the first true national competitor to the status quo in UK banking with a clear ambition to provide customers with the best service in the UK.
“Bringing the two banks together creates the UK’s sixth largest bank combining strong product, service and technology capabilities alongside an iconic brand with wellknown consumer champion credentials.
“We are focused on delivering an excellent customer experience as we bring the two businesses together. This will be achieved through a clear, low-complexity, phased integration and re-branding plan over the next three years.
“This is a unique combination that will enable us to compete with the large incumbent banks.”
There’s a huge optimism about the future. Both banks coming together is unique David Duffy