Service Management for Lloyd and TSB Banks By Customer Service Management for Lloyd and TSB Banks Statement of purpose TSB is a bank in the UK (Trustee Savings Bank) which merged with Lloyd bank back in the year 1995. After completion of the statutory process of integration, it became the Lloyd TSB group and started it operations formally in 1999. It comprised of C&G, Halifax and Bank of Scotland. According to (Booker, 1989, pp. 139-141) the group assumed the largest market share in UK within the banking sector. However, Lloyd had the largest share capital in the group as they represented 70% of the total shareholders.
The main purpose of the two banks joining was to acquire a large representation of the market and thus serve as many customers as possible. TSB bank is now a standalone bank after splitting from the Lloyd TSB group. The bank will be posted in the stock market for sale, and a new owner of the same will assume office and full control of the bank thereafter. Effects of the split banks to the customers Many of the customers who moved to the now TSB bank will not notice too much change.
According to BBC, the managers promised that all members will receive same and equal treatment and services from the bank. The customers of the banks are sure not to lose any of their savings. Despite the change in the brand name, customers will not experience other changes. All the mortgages, loans, and interest rates will not be affected at all for the existing customers. However, this will change for new customers who will be joining TSB bank as they will acquire new cards with a new brand name and the newly reviewed interest rates (Booker, 1989, pp.
142-154). Effects upon customers Lloyd customers will not be accepted to pay cheques in any TSB branches. Moreover, they get charged an extra £5 fee for cash payments made over the counter or if they had their credit cards balances reduced. This is so disappointing to most of the customers. Opportunities The two banks now have the strengths of being able to control a large market share in UK, and seemingly other parts of the globe where they have plenty of branches.
This is evident according to analysts who say that, TSB bank stands a chance of gaining even more customers as Lloyd bank plans to transfer quite a number of its mortgages to TSB. Some weaknesses are also going to be prevalent within the two. This may be as a result of customers transferring to TSB bank even after been a loyal customer of Lloyd for over 20 years. The dissatisfaction can cause several customers to leave the banks. In 2009, a ruling and decree by the European Commission brought about the split in the group in the aim of increasing the range of competition and customer choice in the banking sector.
Therefore, it means that the banks now have the opportunity of gaining more customers. This is because the customers will now have a variety of banks to choose from within the UK banking sector (Booker, 1989, pp. 142-154). There are concerns about the threats that stand to face the division of the two banks. However, the only most evident threat would be competition within the sector, which the manager of Lloyd bank Antonio Horta-Osorio says is under control. Recommendations that would help improve TSB bank after split.
According to (OFT) office of fair trading; Lloyd got a recommendation to transfer £4 billion of its mortgages to the new TSB bank. This mainly aimed at improving TSB bank such that, it would cause the balance sheet of TSB to be much healthier. Consequently, this would also help it grow its market share in terms of size fast (Slayton, 1976, pp. 94-106). Enhanced services to the customers would also be essential in making sure that the two banks and especially TSB reach their goals quickly.
The Office of fair trading also recommends that, Lloyd ensures efficient and effective IT services are present in TSB bank so that it can be more competitive in the banking sector (Mollenkamp, 20010, pp. 16-19). These recommendations relate to those of the analyst as they all recommend for factors that would ensure competitions in the market. The main aim of these recommendations is for the banks to be able to break into the so competitive Banking market in UK (Hiscott, 2012). Conclusion The split of the two banks arose due the need to reduce its size and also bring about competition in the market.
This has proven difficult as the two fights to remain stable in the market. However, the two banks have a promising future ahead as they still work to maintain its earlier customers and also gain new ones (Howe, 1915, pp. 96-99). Reference list Booker, J., 1989. "Branch Records of Lloyds Bank: the Analysis of a Life-Cycle". Records Management Journal, Vol. 1 (Is: 4), pp.
142-154. Hiscott, G., 2012. "Proud to make banking boring again: Co-op buys 632 branches from Lloyds and aims to restore faith in the industry. The Daily Mirror, 19 July. Howe, R. H., 1915. The Evolution of Banking. 1 ed. Chicago: C.H Kerr & co. Also available online on McKendrick, E., 2007. Contract Law. 7th ed. ed. Palgrave: Macmillan. Mollenkamp, C., 20010. "Probe Circles Globe to Find Dirty Money". Wall Street Journal. , pp16-19 retrieved 6 Nov 2013. Peston, R., 2009. "Robert Peston interview with Sir Victor Blank". BBC. Available online on Slayton, 1976.
“The Unequal Bargain Doctrine”. McGill Law Journal, Vol. 1 pp. 94-106.