Richard Branson plans to start Internet banking

18 May 2009

Richard Branson, owner of the Virgin brand of over 360 companies, is planning to launch an internet bank after consumers in the UK have expressed their anger and dissatisfaction at many high street UK banks in the wake of the bank-created global financial disaster.

With personal wealth at $2.4 billion, Richard Branson, the 236th richest person according to Forbes 2008 list of billionaires and also the owner of Virgin Media and Virgin Atlantic Airways, is planning to apply to the UK Financial Services Authority to allow his financial services arm, Virgin Money, to take deposits and offer savings and mortgages.

Virgin Money will follow in the footsteps of Tesco, which acquired RBS to penetrate further into the financial services market following consumer's complete dissatisfaction in banks.

Branson is reported to be seeking the support of US investment banks for funding and is also looking at making a renewed bid for the now UK government owned Northern Rock since the UK Treasury's financial adviser, Credit Suisse has given indications that the government wants to disinvest in the bank.

In an unsuccessful bid, Virgin Group along with a consortium of financers had bid in 2008 for Northern Rock, but Branson had told media at that time that his group would become a consumer bank within the next couple of years, either through acquiring another bank or by getting a banking license.

Virgin Money, the financial arm of Branson's empire, was first started in 1995 and offers many financial services like credit cards, personal loans, savings products and insurance.