Virgin Money will replace Clydesdale and Yorkshire bank UK

Virgin Money will replace Clydesdale and Yorkshire bank UK

Virgin Money will replace Clydesdale and Yorkshire bank Bankrate UK Caret RightMain Menu Mortgage Mortgages Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Bank Banking Compare Accounts Use calculators Get advice Bank reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Credit Card Credit cards Compare by category Compare by credit needed Compare by issuer Get advice Looking for the perfect credit card? Narrow your search with CardMatch Caret RightMain Menu Loan Loans Personal Loans Student Loans Auto Loans Loan calculators Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Invest Investing Best of Brokerages and robo-advisors Learn the basics Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Home Equity Home equity Get the best rates Lender reviews Use calculators Knowledge base Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Loan Home Improvement Real estate Selling a home Buying a home Finding the right agent Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Insurance Insurance Car insurance Homeowners insurance Other insurance Company reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Retirement Retirement Retirement plans & accounts Learn the basics Retirement calculators Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Rui Vieira - PA Images / Contributor June 19, 2018 Sebastian Anthony Bankrate logo

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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Virgin Money has agreed to be taken over by the Clydesdale and Yorkshire Bank Group (CYBG) for £1.7 billion. As part of the merger, the Clydesdale and Yorkshire bank brands will disappear from the high street and be switched over to Virgin Money. The combined banking group will be the sixth largest in the UK, with six million personal and business customers, and £70 billion in total lending (mortgages, credit cards, etc.). It will be twice the size of the next largest bank (TSB), but still far smaller than the UK’s “big five” high street banking groups: HSBC, Barclays, Lloyds, RBS, and Santander. On paper, the merger makes sense: Virgin Money is strong on , , and investments – and Clydesdale and Yorkshire are focused on and small business lending. Richard Branson, who founded Virgin Money in 1995 and currently owns a 35% share of the bank, will do very well out of the deal. He will own 13.1% of the merged banking group – and the group will pay Virgin Enterprises, Virgin’s global licensing company, up to £15 million per year to use the Virgin Money brand. It’s extremely unlikely, but there’s a chance that Branson might even get his face on some banknotes. Clydesdale is one of the handful of banks in the UK that issues its own banknotes, which are generally accepted as legal currency throughout the country. At the very least, CYBG will likely issue new banknotes with the Virgin Money brand – Danske did the same thing after they acquired Northern Bank in Northern Ireland. Somewhat unusually for a takeover, CYBG will give up its branding in favour of Virgin Money. The Clydesdale and Yorkshire bank brands have never done very well outside their home territories, while Virgin Money has broader appeal and better brand awareness. CYBG says it will cost £60 million to rebrand everything as Virgin, including all 70 Clydesdale Bank and 93 Yorkshire Bank branches. That expense, according to CYBG, will be easily offset by £120 million in proposed cuts, mostly as a result of 1,500 job losses – or about 16% of the group’s combined workforce of 9,500. CYBG said that branches are unlikely to be shuttered as there’s little overlap between Clydesdale, Yorkshire, and Virgin Money. As part of the merger, Virgin Money customers will have their data transferred over to CYBG’s systems. The process will be phased over three years, which will hopefully avoid a . Now read about – or SHARE: Sebastian Anthony

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