Virgin Money To Launch Bank

Virgin Money the consumer credit wing of the Virgin empire has applied for a full banking licence.

Virgin Money made their application to the FSA(Financial Services Authority) two weeks ago. The application can take up to 6 months to go through the system but if passed, which is probably a given, Virgin Money plant to open an online bank offering to take deposits and provide mortgages.

Their strategy is to build an Internet presence and develop a branch network on the back of this. As a part of this process the new company will investigate acquisitions as part of this process. A second bid for Northern Rock is a possibility.

A consortium is probably the route, with private equity, that Virgin will take with the acquisitions. (more…)