Midland Bank Case Study

838 Words 4 Pages
According to a research study of a British bank, there were account holders that never visited the bank. Some of them did not even want to visit their banks and though that banking hours were irrelevant. Almost half of these people did not know who their branch manager was. Lastly, 30% hoped that they could do banking transactions over the phone. Because of this group of people who lost interest in banking transaction, Midland group sought to fix their problems. They created a new business called First Direct, a first 24/7 telephone-based bank.
During the early 80’s, the Bank of England introduced the 1979 Banking Act in order to get rid of interest rate cartels banks. UK also introduced mortgage market to institutions and provided personal financial service. This time, UK was experiencing a lot of “deregulation, tax incentives”, and their economy was in great shape that added personal wealth for many.
There were too many banks and branches in the early 90’s. Maintaining them was a huge task and increasing industrialization was impossible because Britain was suffering from recession. In order to save their companies, some of the banks created societies that played against the Big Four in terms of offering the consumers their banking services.
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One of their competitors was Nederlanse Credietbank, a Dutch bank that set up a bank that operates a small telephone staff. Bank of America enabled a voice-activated computer to branch customers just by pressing buttons, while in France, some banks allowed customers to ask anything about their account using Minitel, a videotext that’s connected to their home phones. The dissatisfaction of consumers came from the Henley Center for Forecasting. They said that customer dissatisfaction was high in banking compared in any other retail in

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