9th September 2013
Following a near two-decade absence, the TSB brand has today hit the UK’s high streets and enters the market with the eighth largest branch network in the country, writes Philip Scott.
The 39% taxpayer owned Lloyds Banking Group has switched more than 4.6m customers to the re-instated TSB brand, as a result of being forced to offload hundreds of branches by the European Commission due to rules on state aid.
TSB has more than 630 branches across England, Scotland and Wales, with 8,500 staff looking after more than £20bn of its customers’ money.
The TSB, or Trustee Savings Bank was originally established some 200 years ago and it merged with Lloyds 18 years ago.
Chief executive of Lloyds Banking Group, Antonio Horta-Osorio has urged that the transition for customers will be “seamless”, and the shift will not impact upon their accounts and they do not need to do anything at this stage.
Lloyds Banking Group is creating two new banks – Lloyds Bank and TSB but the latter is due to be sold through a listing on the stock market, which is expected to be sometime late next year.
Deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS) and TSB has its own banking licence so if a customer has deposits with the both TSB and Lloyds Banking Group, they will be protected separately.
– READ MORE: Will you be switching your current account
Kevin Mountford, head of banking at comparison site MoneySuperMarket, says: “”The launch of TSB bank today can only be good news for consumers as it creates greater competition on the high street.
“This brand immediately has the scale to be a meaningful challenger to the big four banks.
“While some customers will be frustrated by being switched to the new bank, only time will tell whether they will decide to stay. In reality the switch should be relatively smooth as customers will retain the same account details and can continue to use Lloyds TSB branches for a period of time until the transition completes fully and they will receive TSB debit cards and cheque books in due course.”
For customers who are unhappy with the change, they can switch elsewhere, and with the launch of the new Current Account Switch Service on 16 September, this will become even easier for people.