Page 268 - Bank Case Studies

Focusing on short-term profit

Emulating the ‘big five’ British banks

Growth by acquisition.

Rather the bank would offer something new by investing in

a number of properties while attracting new customers and

aggressively moving into lending to small businesses. This

against a lending market environment where, through a lack

of competition in the last 10 years, the ‘Big Five’ had little

incentive to compete. (4)

In 2016 TSB acquired £3.3bn of former Northern Rock
mortgages, whilst aiming to migrate its IT system, inherited

from of its former owner Lloyds, to Sabadell of which Pester

said:

“Banking needs to be exposed to the full force of

competition. Only then will consumers really start

to see change in an industry that has been stacked

against them for far too long.” (5)