Intelligent Finance News Update: Future Looks Uncertain
Intelligent Finance News Update: Future looks uncertain for the Internet bank as the Co-operative group leave it out of the deal to buy Lloyds branches.
Intelligent Finance was a leader in the field of Internet Banking and originally was part of the Halifax Bank of Scotland group. During the financial crisis, however, it was bought by Lloyds following which it was earmarked to be offloaded as part of the EU enforced downsizing of the enormous banking concern. The brand that has been going for twelve years may now have to be wound up.
Lloyds confirmed that they had had detailed discussions with The Co-operative Group, the result of which was that the Intelligent Finance part of the business would not be included in the forthcoming business transfer. The reason given for the fact that Intelligent Finance would not be taken up by the Co-op was that it was not seen as being a good match for its strategic needs.
The staff employed by IF and the many customers of the Internet bank have been told that despite this announcement it will be business as usual for the time being. This news however, is bound to leave a lot of questions to be answered about the group that was once heralded as a pioneer in the online banking field. At its launch in 2000 Intelligent Finance had initially stated that it wanted to change banking as a developer of offset mortgages.
Intelligent Finance News Update
However IF stopped selling direct mortgages in 2007 and then pulled out of the supply of mortgages completely two years later under a Lloyds restructure. Since that time the group, that has its headquarters in the Scottish city of Edinburgh has dealt only with savings products but has failed to make any significant showing in any ‘best buy’ tables. This is thought likely to be the result of the on-going efforts of building societies to attract savings customers with more attractive interest rates.
Intelligent Finance does however have an ISA that offers a decent return at 2.50% that has been highlighted by several financial monitors. Jim Spowart, who had also been behind the launch of Standard Life Bank as well as the giant Direct Line Insurance, initially founded Intelligent Finance. There are going to be uncertain times ahead as the bank faces an uncertain future as the world of finance continues to adapt and evolve following the global financial crisis.
3,218 total views, 1 views today