A year on, Virgin Money eyes new markets
(8 June 2004 – Australia) Having clocked up 12 months and issued more than one third of a million credit cards, Virgin Money said it is eyeing other financial services markets in Australia.
Virgin Money managing director Rohan Gamble said there was a "real opportunity" for the company to become a broad based provider of retail financial services in Australia.
He said the company was actively exploring its next market and that potential products included personal loans, mortgages, deposit accounts, general insurance and investment products.
Virgin Money said research house CANNEX had calculated that each Virgin credit card holder had saved $127 on annual fees and interest rates.
Gamble said Virgin, which partners with Westpac on its card venture, constituted 20 percent of card issues over the past 12 months with 31 percent of these sales occurring in New South Wales.
He said the company had benefited from the apathy of its rivals.
"In the same year that we’ve brought real competition to the card industry, the incumbents have reduced rewards programs, increased interest rates and jacked up credit card fees by a record 38 percent. It’s those actions that have helped drive so many of their customers into our arms," Gamble said.
Last April, Virgin supremo Sir Richard Branson ended a nine year partnership with AMP UK spin off HHG by buying out its 50 percent share in Virgin Money for A$220 million.
He said the company was actively exploring its next market and that potential products included personal loans, mortgages, deposit accounts, general insurance and investment products.
Virgin Money said research house CANNEX had calculated that each Virgin credit card holder had saved $127 on annual fees and interest rates.
Gamble said Virgin, which partners with Westpac on its card venture, constituted 20 percent of card issues over the past 12 months with 31 percent of these sales occurring in New South Wales.
He said the company had benefited from the apathy of its rivals.
"In the same year that we’ve brought real competition to the card industry, the incumbents have reduced rewards programs, increased interest rates and jacked up credit card fees by a record 38 percent. It’s those actions that have helped drive so many of their customers into our arms," Gamble said.
Last April, Virgin supremo Sir Richard Branson ended a nine year partnership with AMP UK spin off HHG by buying out its 50 percent share in Virgin Money for A$220 million.
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