Savings target raised
Clydesdale brand ditched next year amid more cuts
Out with the old…. Clydesdale brand disappears
Clydesdale and Yorkshire Banking Group will be renamed Virgin Money from the end of this year, wiping out 181 years of the historic Scottish brand.
The change was flagged by CYBG at the time of the merger as the Virgin brand had a more positive perception among customers and the move is regarded as a key to growing the group as a challenger bank. Virgin branding will replace Yorkshire bank facias by the end of this year and Clydesdale next year.
The group has also announced it will make an additional £50m in savings from its takeover of Virgin Money, taking the total saved to £200m. The Virgin HQ in London will close.
The target for the end of the financial year 2022 adds to CYBG’s previous cost savings target of £150m for 2021.
Three new divisions will be established, each with its own plans to support the group strategy including the launch of Virgin Money for business. The other divisions will be Personal, including a Virgin Money personal current account that will be launched in late 2019, and Mortgages.
The company has announced a new Transformation Programme to realise significant opportunities to digitise and simplify its internal processes.
The bank will present an updated strategy to investors at a capital markets day in London today.
David Duffy, chief executive, of CYBG commented: “Banking is changing at an unprecedented rate. Consumers are using new technology in every part of their lives. With amazing customer experiences available in other industries, they are rightly demanding so much more from their banks.
“We have a clear ambition to disrupt the status quo with the new Virgin Money. The new Group combines the ethos of Virgin, with its distinctive and brilliant customer experience, with CYBG’s technology, product expertise and know-how. We believe we have the winning formula that will create a new force in consumer and business banking.
“Achieving our financial targets will create a significantly more efficient and profitable business with strong and sustainable returns for shareholders. Despite the ongoing Brexit headwinds and continued competitive pressures, the strength of the newly combined Group gives us every confidence we will deliver on our targets.”