CLYDESDALE Bank will step up its pursuit of business and corporate customers in Scotland's capital in a move described as a ''growing challenge'' to Edinburgh's other financial institutions.
To back this up, the Glasgow-headquartered bank will open a new corporate, business and retail facility in Exchange Plaza this autumn. Some 150 Clydesdale employees will be based there, including those who work at the bank's George Street and Charlotte Square offices.
New people will also be brought in on the corporate banking side, taking Clydesdale's total corporate team from roughly 60 to 80 staff members.
Chief executive Fred Goodwin said the Exchange Building in Edinburgh's Lothian Road would be renamed Clydesdale Bank Plaza to reflect its status as the bank's principal offices in Edinburgh. Clydesdale will occupy about one-quarter of the 100,000 sq ft building, which will house a retail branch, corporate banking offices, a business banking centre and an executive banking suite as well as conference and hospitality facilities.
''We've been growing quite well in Edinburgh, but we've always lacked something of a physical presence,'' Mr Goodwin said. ''This will give our people the facilities they need to do business.''
Clydesdale has chosen to pursue this strategy rather than join the bandwagon of banks linking up with supermarkets. Mr Goodwin said he questioned the rationale behind such joint ventures and would be ''curious to see how many of those are still around in five years' time.''
''It's quite good news if you're a supermarket, but I'm not sure it's such good news if you're a bank,'' he said. ''I don't know if people out doing their weekly shopping are also interested in picking up a Pep.
''You may see us talking to a few people about the possibility of doing bits and pieces, but we won't be making any blanket agreements.''
Instead, Clydesdale will be looking to fill the gaps in its branch network in the East of Scotland. This will be accompanied by the expansion of business banking operations in England, where the bank runs five branches in London and a further four in the North-west.
Mr Goodwin said the bank expected to open three more locations south of the Border this year, including one which could be announced as soon as this week. It will be based on the ''same sort of concept'' as the new Edinburgh offices, although it will have neither an executive banking suite nor a dedicated corporate banking staff.
The business banking centre, the executive banking suite and the corporate banking offices at Clydesdale's eastern division centre in Edinburgh will be in operation by September. The retail banking branch, which will occupy the first floor of the building, will open for business in October.
n SAINSBURY'S Bank, the 55%-45% joint venture between supermarket giant Sainsbury and Bank of Scotland, said some 100,000 customers had deposited more than #100m since the venture was launched eight weeks ago.
Chief executive Roger McArthur said demand had exceeded original expectations, with sign-ups continuing at a rate of 10,000 per week. The bank offers an instant access savings account, a Christmas savings account and Classic and Gold Visa credit cards, but plans are also in place for the launch of mortgages and personal loans.
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