Tag Archives: Banks

News

Swansea Building Society’s Cowbridge branch celebrates five years

Swansea Building Society’s Cowbridge branch celebrates five years trading this month, as the society continues to grow its customer base in South East Wales and expand its workforce across the region.

The Cowbridge branch, which opened during December 2017, has now reached £164 million in mortgage balances and over £61 million in savings balances with over 3,000 savings accounts – a particularly impressive figure considering the length of time the branch has been in operation.

When the Society first opened the branch, it employed just seven staff at the branch with two further staff covering the east region. Now the branch has 11 staff based in Cowbridge, with an additional four employed across the East Wales / border region, two of which are based at the Society’s office in Abergavenny.

The Society attributes the success of its Cowbridge branch to its East Wales team, which includes: East Wales Area Manager/Head of Savings & Marketing, Richard Miles; Business Development Manager, Martin Lewis; Cowbridge Branch Manager, David Osterland; Business Development Manager, Dan Goulding; and their assistants.

The team’s proactive approach and strong networking have given it a greater understanding of the needs of the local community – making significant contributions to the branch’s rapid growth in mortgage and savings balances.

Swansea Building Society’s flexible approach to lending, particularly for properties outside of the standard criteria of other lenders, is now widely appreciated throughout Wales and the Welsh Border area, and this provides a solid platform for future growth.

Richard Miles, East Wales Area Manager/Head of Savings & Marketing, Swansea Building Society, said:

 

“We are delighted to celebrate a very successful first five years at our Cowbridge branch. During this time, we have seen our workforce across the East Wales/ border region nearly double, and our balance sheets – mortgages and savings – pass several significant milestones.

 

“This success has come about thanks to the culmination of several years of investment, the hard work and dedication of our staff, and our commitment to opening and not closing branches. As we move forward, we hope to help even more people plan their finances successfully and secure the funding they need for their dream home.”

Fintech, News

77% of Gen Z are ditching physical wallets to pay by mobile

 Marqeta, the global modern card issuing platform, has today released its 2022 State of Consumer Money Movement report looking at consumer payment, banking and shopping preferences, showing digital adoption is on the rise. The company surveyed of 4,000 consumers across three continents, including 1,000 UK respondents, showed that 61% of consumers feel confident enough with contactless payments to leave their wallet at home and just take their phone – a figure that rises to over three quarters (77%) for UK Gen Z respondents (i.e. those aged 18-24).

Marqeta’s research shows that contactless payments are becoming increasingly prevalent in the UK: 96% of UK consumers surveyed have used contactless in the last year. As a result, 42% of UK respondents say it’s been so long since they used anything except contactless, they can’t even remember their PIN anymore – a figure that rises to 54% of those aged under 24. Furthermore, 63% are so used to using contactless that they find it really irritating if they have to enter a PIN.

COVID-19 accelerated a shift to digital and mobile payments, with the survey finding that:

  • Almost half of UK consumers (46%) surveyed say they can count on their hands how many times they’ve used a bank branch in their lifetime. 50% of 18–24-year-olds say the idea of going into a physical bank is completely backward and alien to them.
  • Nearly two-thirds (63%) of respondents believe cash will eventually disappear altogether, while 59% think this will happen in the next five to ten years. A third (33%) say that it would have no impact on their lives if all physical bank branches were to close tomorrow.

  • Despite the decline of in-person banking experiences, most people are in a long-term relationship with their primary bank. Six in ten consumers surveyed have been with their bank for more than six years, with 38% staying loyal to their primary bank for over a decade.
  • Consumers are also open to innovation in cryptocurrency as a payment method, with more than a quarter (26%) of UK consumers surveyed now owning crypto, and 82% of these keen to use it like a debit card at the point of sale.

 

“The age of the bulky physical wallet might be moving behind into the rearview, confidence in mobile wallets is growing, and people feel increasingly comfortable that their mobile phone can handle their payment needs and not leave them stranded,” commented Anna Porra, European Strategy Director at Marqeta. “While the shift to digital payments was born out of necessity, many are happy to completely step away from in-person banking. And it’s easy to see why – with long queues, inconvenient opening hours, and hygiene concerns particularly during the pandemic creating the perfect storm to shift consumer appetite away from in-person experiences that weren’t very popular to begin with. With physical branches closing at unprecedented rates, banks must ensure they adapt their products and services to operate online seamlessly.”

The research also finds that payment preferences adopted during the pandemic have shifted to becoming habits. Consumers are increasingly reliant on mobile wallets: 77% of UK respondents have used a mobile wallet in the last 12 months, with 87% agreeing that they are easier to use than they imagined they’d be, and 83% saying they’re able to make purchases with their mobile wallet everywhere they want to. Almost two-thirds (64%) also prefer to use their mobile phone to pay as it has more built-in security features.

Customers are continually seeking innovation from their banking providers, fuelling the shift away from in-person banking experiences. For instance, four in five (80%) consumers surveyed would like their bank to offer rewards that are personalised to them based on their spend, while 60% would like tailored advice from their bank on creating budgets. There is increasing appetite for invisible payments too, with 62% of respondents saying they can’t wait for more till-less stores to be rolled out more widely.

“While the pandemic was the catalyst for the shift to contactless and mobile wallets, it is the convenience, security, and speed of these payment options that have made them sticky,” continued Anna Porra. “As contactless limits continue to rise and more merchants welcoming contactless payments, banks and fintechs must work harder than ever to provide a smooth digital experience for their customers that provides them with security, giving consumers the digital convenience they crave.”

Finance and Banking, News

Are banks shying away from lending to small businesses?

Written by Kunal Sawhney, CEO, Kalkine

When the confidence among the small businesses was already showing signs of dwindling amid record-high inflation and supply chain bottlenecks, the latest report of the Blackpool-based Federation of Small Business (FSB) will shake it further. The survey report revealed that in the first quarter of 2022, small businesses struggled to access finance.

The survey results FSB, the UK’s largest campaigning group for small businesses, has highlighted that companies and banks in Britain remained concerned about the worsening economic outlook, which resulted in lending to small businesses falling to its lowest since at least 2014. Just 9 per cent of small businesses applied for finance in the first three months of this year, and the number of approvals for finances reached a record low of 43 per cent.

The most striking thing was that a majority of smaller businesses sought finance to help with their cash flow requirements. Not only this, one in ten small businesses are mulling closing, downsizing, or even disposing of their businesses over the coming year.

Deteriorating small business scenario

Small businesses have been hit hard in the country, first by the Brexit and followed by the unprecedented event of the Covid-19 pandemic. The number of small businesses in Britain witnessed a drastic fall of 6.5 per cent to around 5.5 million at the start of 2021 compared to the last year. Small businesses, especially the small and medium-sized enterprises (SMEs), that account for 99.9 per cent of them and are the major employment generator, with three-fifths of the total UK private sector employment.

SMEs have faced a challenging situation in 2021, which is still continuing, with many reporting no-cash and a low level of confidence in survival, as they not only had to deal with the challenges associated with the COVID-19 pandemic but also with the implications of Brexit during 2021. Small businesses continued experiencing significant challenges limiting their capabilities to engage in innovation and finish projects on time.

Lending for small businesses is getting tough

Going by the FSB survey results, the majority of the 1,211 small business owners and sole traders surveyed in March and April sought traditional overdraft or loan products, and 25 per cent went for asset-based finance, about 7 per cent sought funds through P2P lending platforms, while 5 per cent via crowdfunding. Small businesses are already struggling to repay the support taken from the government during the pandemic, and if the further funding dries up, the possibilities are that they will default and ultimately get closed.

Even the latest report from the Bank of England (BoE) has shown the annual growth rate of lending to SMEs reached a record low. There have been business disruptions that have been stressing the revenue generation of small businesses; while many in the survey reported late payment of invoices; these could be the reasons they are delaying repayments.

Final thoughts

The central bank has not only raised concern over the declining lending to the small businesses but has England warned of a sharp economic slowdown and a recession, with inflation surging to over 10 per cent record levels by the end of this year. At this juncture, if the lenders start shying away from the small businesses, it could turn detrimental to the already faltering economic recovery. Small businesses contribute a major chunk to economic growth and are a major source of employment generation. Now is the time for the lenders to come out of their outdated lending processes and rigid criteria to support small businesses and the nation’s overall economy.

News

Swansea Building Society to increase interest rate on savings

Swansea Building Society is increasing the interest rate payable on all its savings accounts, with the change coming into effect on January 1, 2022.

 

The building society’s decision was taken prior to the recent rate change announced in the Bank of England’s (BOE) base rate, and all its savings account interest rates will be increased by 0.15%.

 

The Society is also making additional changes to its range of savings accounts. With immediate effect, it is now accepting Cash ISA transfer in requests, and the maximum amount that can be held across all Society savings accounts per customer has been increased to £1m.

 

Furthermore, its business instant and 90-day notice accounts are now available for new account openings.

 

From January 1, 2022, the Society’s Personal Premier Account and Business Premier Accounts will be renamed Instant Access Saver Account and Business Instant Access Saver Account respectively – with no changes to the current terms and conditions.

 

The Society is also relaunching its Regular Saver Account for new account applications, which will now be called Regular Monthly Saver Account.

 

Lastly, the Society’s savings account aimed at helping young adults save, titled the First Adult Saver Account, will see the maximum age for new and existing account holders increase to 40 years of age (currently 30) and the maximum that can be saved in the account rise to £40k, with no restrictions on the number of withdrawals that can be made, subject to providing 7 days’ notice.

 

Alun Williams, Chief Executive at Swansea Building Society, said:

 

“The Society has enjoyed an excellent year, and while the Society’s Board is mindful of the challenges that lie ahead during these difficult times, we believe that the Society is now able to increase the interest rates paid on our savings accounts. This reflects our belief that the Society is in a good position to effectively operate both now, and in the future, ensuring we build on the foundations successfully laid down over the last 99 years of operations.

 

“We are also making some changes to our range of savings accounts, which are aimed at making things more straightforward and flexible for savers as we move towards our centenary year.”

Awards, Finance and Banking, News

DLRT Awarded Leading Financial Services Supplier Qualification

DLRT, part of The TALL Group of Companies, the UK leader in the provision of secure paper and electronic payment solutions, has been awarded the Hellios Financial Services Supplier Qualification (FSQS). The Lisburn-based printing specialist achieved the certification which is required by major Banks and Financial Services Organisations when selecting suppliers.
FSQS is designed to improve the standard of suppliers through a common set of policy and risk areas including IT Security, Operational Risks, GDPR and Responsible Business Governance which are regularly reviewed and updated to stay ahead of regulatory changes.

As the regulated environment becomes more complex, the rigorous qualification system provides a standardised way to manage requests for compliance and assurance information.
FSQS is currently used by 32 major Banks, Building and Insurance companies including Lloyds Banking Group, Metro Bank, Santander, TSB, Clydesdale Bank and The Bank of England.
Peter Thomas, Managing Director of DLRT, said: “We are extremely proud to have successfully achieved this accreditation which demonstrates our strong commitment to compliance and responsible business practice. It underpins our credentials within the financial services sector providing products and services that meet the compliance and regulatory requirements of our clients.”

“I am also pleased to say that this certification recognises the hard work and dedication that all our staff in Lisburn has made during the ongoing COVID-19 pandemic. Operating throughout as a ‘key’ supplier to the financial sector, they have ensured a continuous supply of personalised printed products to our clients and their customers.”