M&S Bank versus Tesco Bank
http://kadenz.ca/?post_type=post&p=34
I wonder what Sir Terry Leahy, former chief executive of Tesco, makes of the fanfare about rival UK retailer Marks and Spencer launching a bank with HSBC. According to Marc Bolland, M&S boss, the rationale for putting 50 bank branches inside its stores goes as follows:
This bank will be built on M&S values; putting the customer at the heart of the proposition and delivering the exceptional service that sets us apart from the competition.
And here’s how Sir Terry describes Tesco’s decision to press ahead with banking services in the 1990s – after Tesco customers asked whether they could use their loyalty “Clubcards” to pay for goods. From his new book Management in 10 Words, which I reviewed this week:
Our success was largely because our approach was in tune with old-fashioned banking: know your customers, encourage them to save with you and insure with you and support them when they need to borrow. Because we were able to use Clubcard to get to know our customers better, this gave us an advantage in terms of the risk we were taking.
Despite some of the regulatory and market obstacles that Tesco has encountered in trying to expand the venture, I expect Sir Terry and his successor Phil Clarke have a bit of a been-there-done-that attitude to the M&S initiative. As the former Tesco CEO writes: “What once seemed courageous and, to some, foolhardy, now seems common sense.”
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