Virgin Money revives plans to enter small business banking market
Virgin Money has set out its plans to enter the small business banking market, announcing a refreshed? strategy that it hopes will benefit from government efforts to increase competition in the sector.
The financial services brand, owned by Richard Branson’s Virgin Group, will launch a new SME savings account in January 2018 with a target of 5bn worth of deposits within five years.
The bank has said it will begin developing relationships with its new business customers to lay the foundations for potential broader future development in this attractive, but poorly served market.
Following the Brexit vote in June 2016, Virgin Money called an immediate halt on its small business lending plans, shifting its priority to digital product development. At the time, the bank’s chief executive, Jayne-Anne Gadhia, said it was a timing point rather than anything else? and indicated Virgin Money’s intention to return to small business finance once the UK economy had proved its resilience.
Now, Gadhia has said that Virgin Money was delighted to announce the start of our journey into SME banking”.
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Praseeda Nair is the editorial director of Business Advice, and its sister publication for growing businesses, Real Business. She's an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.
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