FirstDirect withdraws current account for new customers

The coronavirus is affecting everyone’s lives and we want to make sure we are doing all we can to support our customers and our people.

This means we need to focus our attention on our existing customers and their immediate financial needs. To make sure our people are able to do this, we have taken the decision to withdraw first direct current accounts to new customers.

We hope this will only be a temporary measure so please keep checking back here for updates.

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I reckon this says a lot about the effort required to onboard new customers. The very characteristic which has kept FD high in the charts - attentive CS - is the very one which is bringing about this decision.

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This implies that they’ve at least considered the possibility that it could be permanent. Have HSBC been considering closing First Direct down as a separate brand?

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That is a strange statement to make. There’s no reason it wouldn’t be temporary in regards to the virus, unless there are other reasons to shut up shop.

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It sounds like… Due to financial crisis HSBC decided to close/merge a division

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Headcount is the biggest cost.

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Maybe this can be a boon for both Starling and Monzo in terms of increasing customer numbers? A shrewd bit of advertising from both banks might just draw some in. Just as long as folks don’t take too much notice of some of the negative reviews on TrustPilot, which I will reserve my opinion on because it could lead me to post something which some might find a tad derogatory. :laughing:

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Quite interesting that they are doing that actually. This is what happens to businesses that aren’t making any profit though.

There aren’t many companies making a profit out there right now to be fair.

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But surely this is a result of extraordinary circumstances and it’s being used by many companies.

I think it’s just poorly worded. They mean something like “a very short-term measure”, which no one can know at the moment

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If you read further on apparently it’s a lot of staff including a large number of cops.

Sounds like a significant proportion of their staff.

Hope not !!! :rofl:

Seems like Monzo is getting closer and closer to being a typical silicon-valley bullshit company, they blew all their money on marketing, growth and “engagement” and now don’t have any more to spend on actually supporting their customers.

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I think Monzo have been here for a while. Tom’s clearly checked out and now it feels like their VC’s are fighting to keep it together until they can figure out what to do with it.

Maybe they’ll just use Covid-19 as an excuse to have it fail

Selling it to a bank probably not an option anymore.

Legacy banks are getting their act together: Lloyds working with Thought Machine to completely re-build their banking app from scratch, HSBC testing a re-written app with their SME division, RBS with both Mettle and Bo, …

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It’s possible someone may be interested in acquiring them for their banking licence (like Tandem did to Harrods Bank) and maybe for the underlying tech but the business itself seems doomed to failure

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They have too much baggage. Ideological customers who expect the banks/their shareholders to heavily subsidise their operations.

Harrods Bank was basically in the process of being wound down (like R. Raphael & Sons/Raphaels Bank).

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