New customers to be brought under one Co-op Bank brand
(2 June 2015 – United Kingdom) The Co-operative Bank may close its internet banking platform Smile to new customers as it looks to cut costs and rebuild the reputation of its core business.
Bank executives told investors and analysts in May that it planned to bring new customers under the Co-op Bank umbrella, suggesting that Smile – hailed as the first internet bank when it launched in 1999 – is no longer a priority.
Retail and commercial banking director Liam Coleman said at an investor meeting on 20 May that while the Smile brand would still exist, the future intention was to acquire customers to one brand, which would be the Co-op Bank.
He contrasted Smile with Platform, the Co-op Bank’s mortgage brand for selling through brokers, which he said would remain in place.
The Co-op Bank has launched a heavy marketing push to boost its public perception, as well as new incentives to boost customer numbers, suggesting it is focusing on its core business.
Consolidating the bank, by bringing all new customers under one roof, would allow it to cut costs as it aims to return to profit.
Two years ago the bank has to be bailed out by hedge funds after a £1.5 billion (A$2.9 billion) black hole emerged in its accounts.
Current forecasts by the bank show it does not expect to make a profit until at least 2017.
It has been plagued by a series of scandals, including the arrest of its former chairman Paul Flowers over drug allegations.
Smile was launched to great fanfare, offering current accounts, savings and credit cards, in 1999, at the peak of the dotcom bubble.
It has regularly topped customer league tables, although its internet banking credentials are no longer unique, with almost all lenders now allowing customers to open and manage accounts online.
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