The Co-operative Bank has announced a loss of 38,000 current account customers amidst a “hurricane of negative publicity” following its near collapse, but has, however, recorded a financial strengthening in its first half.
The 5% drop in its customer base was announced this week, including a net outflow of 2% of its current account holders.
The blame is being placed on negative publicity after the bank faced increasing problems relating to its board of directors and business practices. The bank has since released an array of ethical reforms, with a particular emphasis placed upon its governance structure and members rights.
Niall Booker, chief executive of the bank, said, “When you consider what the bank has gone through I don’t think losing less than 2% [of current account customers] is a bad outcome.”
The loss of 38,000 current account holders was partially offset by an increase of 9,700 customers who switched to the Co-op Bank, which is double the number of new customers who joined six months earlier.
Booker joined soon after a £1.5 billion capital hole was discovered and has since enforced an array of cost cutting measures to gain control over the bank’s finances. The bank is now being restyled into a smaller retail and business lender, with numerous branch closures and one in five staff being made redundant.
“Transforming the organisation into a viable and profitable business which generates capital in the long term still requires significant change – both operationally and culturally,” Booker said.
Charlotte Webster, campaign manager for Move Your Money, said, “The exodus of 38,000 customers from the Co-op Bank reflects the appetite for good banking in Britain.
“Whilst it’s undoubtedly disappointing to see a bank with much potential suffering from mismanagement, it’s reassuring to see the market on the move and people shifting their money into better hands. There’s more demand than ever for ethical banking and, thankfully, a growing number of options.”
A recent report by the Co-op concluded that the bank’s decline was due to a “culture of mediocrity”, as well as a “willingness to accept poor performance”. The group’s merger with Britannia Building Society in 2009 was also to blame.
Photo source: sludgegulper via flickr
Like our Facebook Page
Strange Ways the Sporting World Impacts the Environment
The Future of Cryptocurrency is Eco-Friendlier than the Present
Why Bill Gates Is Wrong on the Climate Impact of Bitcoin
Everything You Need to Know to Create an Eco-Friendly Nursery
4 Environmental Benefits of Using A Buckwheat Pillow
Eco-Friendly Ways to Dispose of The Office Furniture!
7 Huge Advantages of Using Solar Power at Home
5 Important Changes to Become An Eco-Friendly Nicotine User
4 Great Ways to be a Committed Eco-Tourist While Flying
7 Basic Types of Forex Charts Ethical Investors Must Understand
How to Make Your Ecommerce Business More Eco-Friendly?
How Can Social Media Help In Promoting Sustainable Lifestyle?
Luxury Development for The Ultra-Rich Causing Climate Change Conundrum in Barbuda
How Does Bitcoin Mining Work and is it Eco-Friendly?
Is Gen Z Ahead of Millennials in Terms of Eco-Investing?
Four Reasons Why Buying Used Cars Is the Way to Go Green
There is no Planet B: The Growing Importance of ESG
Wonderful Environmental Monitoring Tips to Keep Indoor Air Clean
The Tremendous Benefits of Investing in Energy-Efficient Windows
4 Morning Productivity Tips for Green Entrepreneurs that Are Night Owls
- Features10 months ago
Eco-Friendly Interior Design Is Easier Than You Might Think
- Features7 months ago
Eco-Friendly Hacks To Create A Durable Shop For Your Home
- Features8 months ago
5 Simple Ways To Create A Greener And Healthier Home
- Environment11 months ago
The Benefits Of Sustainable Agriculture For Farmers