BOSI buys ESB shops to enter retail banking in Ireland

Just an observation about this issue which has been greeted by almost universal acclaim.

I have long thought that the staff at the ESB shops are far more suited to clerical/administrative roles like banking that to "white goods" sales.


Im looking forward to BOS shaking up the retail banking industry.

ajapale
 
Unfortunately, it looks like it will be next summer before BOSI will launch their private customer banking service.

I, for one, am eager to see what the offering is like.

I'm sure they plan to shake up the private banking sector in the same way they shook up the mortgage sector a few years back!
 
Is not a bit odd that RBOS is building a branch network, as opposed to operating mainly/solely online/by phone like Northern Rock, while the established institutions have been paring theirs back over recent years?
 
I'm amazed that BOSI plan to offer jobs to all the ESB staff. Can you really expect the cooker salesman to do a great job as a bank branch official? Would this be a requirement of the TUPE regulations?

I'm also amazed that the ESB guys will get their full redundancy package PLUS the offer of the new job!
 
TUPE regulations

I Googled but couldn't find an obvious answer. Can you explain or link to an explanation please? Thanks.

I'm also amazed that the ESB guys will get their full redundancy package PLUS the offer of the new job!

I read that in the Irish Times yesterday and was just as surprised. Seemingly they have three options (a) redundancy and leave (b) redundancy and transfer to BOSI or (c) no redundancy and get redeployed within the ESB or some subsidiary.
 
..which has been greeted by almost universal acclaim.
Click to expand...

I wrote the above before I had read Peter Levy's article in the Examiner on Friday.

In the article he states that the deal is bad for consumers of the esb shops, bad for the staff of the electrical stores and bad for the shareholders of the ESB.


Its always interesting to hear the dissenting voice.

ajapale
 
In the article he states that the deal is bad for consumers of the esb shops, bad for the staff of the electrical stores and bad for the shareholders of the ESB.

Even if these three assertions are true (I haven't see the article so don't know what they are based on) it does not necessarily mean that the move is bad for the wider public (prospective customers of the new retail banking operation), BOSI or the banking industry in general.
 
Hi Clubman,

The article is not on line so I cant refer you to it.

His article opens with a joke " What do want? More banks! When do we want them? Now!"

I suppose what hes getting at is that banking and banks are just one aspect of life and I think he was pointing out that there may be other considerations.

In fairness his opinion piece does back up his arguments with some facts.

The esb made credit available to thousands of people who other wise would not get it.

He maintains that when the value of the properties is taken into consideration that the ESB shareholders (us) may be short changed.

Incidentally, I don't agree with him but I always find the dissenting voice interesting.

ajapale
 
The esb made credit available to thousands of people who other wise would not get it.

Often at prices that were well above what was available elsewhere though - in which case many people would have been better off saving up to buy the goods with cash from a cheaper supplier than buying them at inflated prices with interest free credit.

He maintains that when the value of the properties is taken into consideration that the ESB shareholders (us) may be short changed.

Interesting - must look out for more on this in coming days/weeks.

Incidentally, I don't agree with him but I always find the dissenting voice interesting.

Agreed!
 
have you noticed the trend in recent years for Banks to regard themselves as retailers. (Bank staff sell financial products) And for retailers to consider themselves as banks (Electrical retailers selling credit and extended warranties)? This latest development blurrs the line (if there ever was one) even further.
 
This latest development blurrs the line (if there ever was one) even further.

I don't see how. I presume that they're going to convert the former ESB shops into retail branch offices and not continue to sell electrical goods along with financial products? I think that the height of the retail/financial convergence came with things like Tusa (RIP) and in-store financial services operations (e.g. I passed an in-store mortgage operation upstairs in Arnotts the other day). No harm in all of this as long as people don't rely on sales people for independent advice/guidance or go shopping for tights (the wife, not me!) and arrive home with a new mortgage unexpectedly!
 
As a HBOS shareholder, I dont want folks to get the idea that they are used to handing the shop away for nothing. Margins in HBOS are terrefic and you should look at 'unsceured term loans' rates in the UK. They are mouthwatering!

Also please dont confuse 'transaction' banking with the sellling of financial products. I can assure you that the model that is envisaged most certainly is not the 'cashier and queue' model but is more like the 'boutique' model such as mortgage, small business and term loans.

That said, the margins on some business will give HBOS good opportunity.
 
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