Londoners more likely to give challenger banks a chanceComments Off on Londoners more likely to give challenger banks a chance
A YouGov survey of more than 2000 people showed 21% of London residents would consider banking with one of the new players like Metro Bank and Virgin Money against just 12% across the UK generally.
The capital is highly attractive to new banks partly because Londoners average salary of £41,597 is nearly twice that of the country as whole’s at £26,756.
“London is a particularly lucrative market for banks and one which some new entrants have targeted for their initial launch,” said John Salmon, head of financial services at law firm Pinsent Masons.
“On average customers in the capital will have a higher gross salary than in other parts of the UK, and they will often be both tech savvy and time poor.”
Challenger banks still have a tiny proportion of the overall current account and savings markets but are growing steadily.
New switching rules which came in 15 months have made moving accounts more simple.
Craig Donaldson, chief executive, Metro Bank said: “We believe that it is massively important that Londoners no longer accept the poor service they have lived with for far too long and that people and businesses vote with their accounts and move to where they will be properly looked after.
“We have been blown away by the hugely positive reception Metro Bank has received from Londoners and the business communities that serve London.”
A spokesman for Virgin Money said: “The digital age means that physical proximity to your bank is much less important than it used to be and Virgin Money is welcoming new customers in London and across the UK.
“Customers are also looking for something extra and the Virgin Money Lounges offer them just that.
“They are designed to be places where our customers can relax, have a cup of tea or coffee, and use the facilities free of charge and our London Lounge is proving extremely popular.”