Virgin Aiming to Become Bank

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Virgin Aiming to Become Bank

Mon, 09 Mar 2009

Sir Richard Branson has revealed his intent for Virgin to become a high street bank within two years. Mr Branson indicated that the company would seek to re-enter the banking industry either in its own right with an application for a banking license, or through an acquisition of another bank. Virgin had previously delved into the mortgage market, having sold Virgin One to the Royal Bank of Scotland in 2003.

Virgin has already made for attempt in recent years to re-enter the banking industry, as Sir Richard made a failed takeover bid for the troubled lender Northern Rock in late 2007, although that attempt was ultimately unsuccessful as the bank was nationalised. Sir Richard believes the lack of confidence in existing banks and lenders gives Virgin an opportunity to build its market share quickly.

Virgin are said to be lobbying the government to break up the 70 per cent state owned Royal Bank of Scotland to ensure greater competition in the banking sector. Sir Richard is said to be hoping to develop a low risk, savings based institution.

Mr Branson said, ‘We are going to get back into the mortgage business and we will become a bank either by acquisition or by getting our own banking licence. You will see us become a consumer bank within the next couple of years.’

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