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How could this affect the Virgin Atlantic Credit Cards? Do we expect to still see them being offered under Natiowide?
Urgh, i really don’t want any changes to my card portfolio. It’s working well for me. Rob knows a bit more about the way the VS card is structured corporately so that may give us an indication.
It could mean a significant improvement in customer service for the Virgin cards? Or the whole thing going downhill…!
Virgin Money is a total mess. I had to access my accounts using three different systems/log ons when I was actively using them for a while. It can only get better as part of Nationwide, who will phase out the Virgin branding over time (the King has no clothes).
Along with the proposed acquisition of the Co-op Bank by Coventry Building Society, it is good to see a strengthening of the mutual sector.
If the VAMC becomes a casualty of the merger, then so be it, although there would presumably be other companies that could do a deal with Virgin Atlantic if Nationwide want to drop the product.
According to the BBC Virgin Money will entirely disappear over the next 6 years, which would seem to mean the disappearance of this card, unless Nationwide create a new co-branded card?
unless Nationwide create a new co-branded card?
Imagine VS would be keen to keep the partnership going or will have to find someone new. It would seem suicide not to have a credit card in the UK!
They are keeping the virgin money brand for six years, no need to worry about it ending anytime soon.
I have a cash isa with virgin, it’s a pain to log into as it’s separate from the app, so is some other virgin account I have, their it system really needs updating, hopefully nationwide can sort it out.
On a side note, I think we could see further consolidation or buy outs in the banking sector coming up, might be that some of the fintech start up start to be acquired.
More concerned with the travel insurance. Following the change at Nationwide, I was considering Virgin for the travel insurance ….
More concerned with the travel insurance. Following the change at Nationwide, I was considering Virgin for the travel insurance ….
Yes, exactly my thoughts too!
They are keeping the virgin money brand for six years, no need to worry about it ending anytime soon.
I have a cash isa with virgin, it’s a pain to log into as it’s separate from the app, so is some other virgin account I have, their it system really needs updating, hopefully nationwide can sort it out.
On a side note, I think we could see further consolidation or buy outs in the banking sector coming up, might be that some of the fintech start up start to be acquired.
Keeping the brand is nice, but they can easily devalue while still using the brand.
On the side note, I cant believe Barclays was allowed to gobble up tesco bank. Whats the point of encouraging new banks if incumbents can keep getting bigger inorganically? The legacy banks must be banned from acquisitions in same products. Force the new smaller banks to merge or acquire each other.
They are keeping the virgin money brand for six years, no need to worry about it ending anytime soon.
I have a cash isa with virgin, it’s a pain to log into as it’s separate from the app, so is some other virgin account I have, their it system really needs updating, hopefully nationwide can sort it out.
On a side note, I think we could see further consolidation or buy outs in the banking sector coming up, might be that some of the fintech start up start to be acquired.
Keeping the brand is nice, but they can easily devalue while still using the brand.
On the side note, I cant believe Barclays was allowed to gobble up tesco bank. Whats the point of encouraging new banks if incumbents can keep getting bigger inorganically? The legacy banks must be banned from acquisitions in same products. Force the new smaller banks to merge or acquire each other.
Devalue the Virgin brand? Branson did that a long time ago. Virgin was synonymous with quality 30 years ago. Not any longer.
If VA eventually drop the card then I guess we go to another card that accumulates points that can be transferred like AMEX gold
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I cant believe Barclays was allowed to gobble up tesco bank. Whats the point of encouraging new banks if incumbents can keep getting bigger inorganically? The legacy banks must be banned from acquisitions in same products. Force the new smaller banks to merge or acquire each other.Why would someone start up a new financial services business if the government closed down the most common means of them securing an exit?
Be careful what you wish for. As someone with decades of involvement with financial services start-ups, I can tell you that one of the first questions asked by an initial investor is always, “What’s the exit plan for me to get my money back?” With no exit plan, there would be no initial investment, no start-up, weaker competition, and even more deeply embedded oligopoly. Starting a bank needs an investment £100m or more; even starting a non-bank lender may need £20m or more. Startup B2C organisations may need far bigger sums to support brand development and customer acquisition. That startup cash isn’t a gift: it has to be repaid at some point.
Sure, from a startup point of view, you need an exit plan. But from a regulator point of view, the whole purpose was to encourage competition.
Of course the startup founders will try to sell for the maximum possible, hardly a surprise. Thats like saying businesses try to maximise profits.
But doesnt mean thats good for the public. What works at a micro level may not be good at a macro level. Regulators are there for a reason.And its not like all exit routes are shut. They can list, they can merge or acquire other banks, they can sell to other long term investors, etc.
Devalue the Virgin brand? Branson did that a long time ago. Virgin was synonymous with quality 30 years ago. Not any longer.
True, but talking specifically about miles earning, signup bonus, vouchers etc from the VS card.
If the goal for Nationwide is to abandon the brand then a joint venture with Virgin Atlantic clearly will not make as much sense as it did for Virgin/Clydesdale management. However, if the card remains a success then why would the new owners want to kill it off? There are plenty of co-brand products out there so there’s precedent.
Just have to wait and see.
If the goal for Nationwide is to abandon the brand then a joint venture with Virgin Atlantic clearly will not make as much sense as it did for Virgin/Clydesdale management. However, if the card remains a success then why would the new owners want to kill it off? There are plenty of co-brand products out there so there’s precedent.
Just have to wait and see.
Because Nationwide doesn’t issue Mastercards?
Personally disappointed with this news. I think the Virgin credit card is amazing, giving point on spends in Europe with no currency adjustment fee. The issuing of vouchers is a little clunky, but the availability of reward flights compared to BA is way better in my experience. Ringing up to book reward flights is a little inconvenient but if you’ve done your research in advance on the website its fine.
Been a customer of Nationwide for 30 years and in the old days they offered much better rates for savings and mortgages, whereas now there’s little difference to that offered by the banks. Surprising seeing as they should be able to, with no shareholders to pay. The recent rebrand to just ‘Nationwide’, dropping the building society name says it all.. it’s a wannabe bank and has given up on the mutual benefits. I’m sure they’ll ditch the Virgin association.
Like the majority of takeovers by competitors, this will only mean bad news at some point.
Wonder what this means for my boy’s Virgin Headstart bank account which no long is available paying base + 1%. Virgin actually texted me today to say I can now call to withdraw money from it rather than going to a branch, presumably as they have so few branches left.
Sure, from a startup point of view, you need an exit plan. But from a regulator point of view, the whole purpose was to encourage competition.
Of course the startup founders will try to sell for the maximum possible, hardly a surprise. Thats like saying businesses try to maximise profits.
But doesnt mean thats good for the public. What works at a micro level may not be good at a macro level. Regulators are there for a reason.And its not like all exit routes are shut. They can list, they can merge or acquire other banks, they can sell to other long term investors, etc.
I think the regulators and politicians are pretty happy that the UK banking market is already pretty competitive. It’s difficult being a mid-size hybrid bank like Virgin and the management wasn’t able to grow it in the way they had hoped. Nationwide can spread the costs over a much bigger base and hope to attract a younger customer.
Re the startup costs, Chase’s shareholders weren’t too happy about the management’s forecast that the UK digital bank launch would have accumulated losses of £700m in the first three years.
If the goal for Nationwide is to abandon the brand then a joint venture with Virgin Atlantic clearly will not make as much sense as it did for Virgin/Clydesdale management. However, if the card remains a success then why would the new owners want to kill it off? There are plenty of co-brand products out there so there’s precedent.
Just have to wait and see.
Are the Virgin Atlantic credit cards a success? I don’t know the answer, but I suspect they might not be very profitable as they lack scale and the JV seems rather one sided plus the benefits on the paid card are very costly to provide even allowing for the fee and points cap.
From what I’ve seen so far, Nationwide are interested in the mortgage & savings books, so may even sell on the credit card business.
As both a long term Nationwide account and a Virgin Credit card holder I have skin in both these games. I have two concerns. I hope that Nationwide’s desire to join the big boys isn’t going to end up like the disaster of the Co-op Banks take over of Britannia building society. The Coops failure to carry out due diligence to uncover £2 Billion of non-performing commercial debt almost brought the entire co-op operation to its knees. Nationwide will need to think carefully about being a credit card issuing organisation. As a VA credit card+ holder, I generate well in excess of the £10K spend threshold for a free companion ticket every year. Not withstanding the VA points I generate. My best case scenario would be for Nationwide to protect its business by offloading the VA credit card business and ideally selling it to Halifax for absorption into their Clarity card, rated by Martin Lewis as the best overseas card with near perfect exchange rates on foreign currency and no transaction fees. I could then use the VA card on my regular extended trips to the USA where the VA card charges are very un-competitive. So, instead, I have to use my Halifax Clarity card whilst I’m there and thus miss out on a substantial number of VA points
My best case scenario would be for Nationwide to protect its business by offloading the VA credit card business and ideally selling it to Halifax for absorption into their Clarity card, rated by Martin Lewis as the best overseas card with near perfect exchange rates on foreign currency and no transaction fees. I could then use the VA card on my regular extended trips to the USA where the VA card charges are very un-competitive. So, instead, I have to use my Halifax Clarity card whilst I’m there and thus miss out on a substantial number of VA points
Nobody ever seems to mention it but the VA current account debit card matches the Clarity in terms of forex rate and no transaction fees globally. Great for withdrawing cash wherever you are.
No S75 protection obvs but it’s worked well for me for the day to day expenses in many countries outside the EU.
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