Bonus payments to Barclays executives to be deferred

It has been announced recently that the High Street bank Barclays has decided that it will be deferring bonus payments that were to be made to banking executives for up to three years. This means that directors and senior staff at Barclays will have to wait up to three years to get their bonuses, which are likely to be paid in the form of shares that are staggered up until 2013. Read more

Tags: barclays, bank bonuses, bank executives, G20, United Kingdom

Overdraft interest rate increases from Barclays

Barclays Bank has recently hiked up the interest rates charged on its overdraft facilities on many of its accounts, including its packaged current accounts for which customers have to pay a monthly fee. Read more

Tags: barclays, customer, Additions, overdraft deals, Bad news, bank accounts, increase, overdraft interest rates

Another bank gets nationalised

Earlier this year the financial headlines were filled with news about the government taking over the stricken bank Northern Rock. Over the past few days the government has used the same legislation that was used in the Northern Rock takeover to rush through the nationalisation of another troubled bank, Bradford & Bingley. Read more

Tags: Minister, barclays, bradford & bingley, major banks, banks, FTSE, level

Up to 50% of Isa investors are contemplating self-select

More than half of Individual savings account (Isa) investors prefer to make their own decisions when it comes to investing, a new study has shown.

The results from Barclays’ survey reveal that ten per cent of investors would like to be more involved in their Isa.

Meanwhile, a third of Isa investors have opted for self-select and a further 24 per cent are thinking about taking one out.

Tom Ryan, director at Barclays Stockbrokers, said: “Self-select Isas have empowered investors, giving them the freedom to make their own decisions and to take control of their investments.”

The added attraction with the product lies with the option it provides to buy and sell when the consumers prefers, he added.

Up to 75 per cent of investors said they were attracted to self-select Isas because they like to make their own decisions.

From April 6th, new updated charges will come into effect for all Isa accounts for the 2008-09 tax year.

Tags: barclays, Barclays Stockbrokers, ISA, new study, investors, ISAs, cent, Self-select

Barclay’s share prices fall amidst rumours

Barclays Bank, one of the UK’s high street banking giants, has seen its share prices plummet to their lowest level in two and a half years.

It is thought that the fall in share prices could be partly due to rumours that the bank has experienced financial problems in light of the recent credit crunch that has swept across the UK. Rumours were sparked back in August when the bank took out two overnight loans from the Bank of England, which was blamed on ‘technical’ problems.

Share prices tumbled by 8% at one point, taking them to 524.5 pence. This was followed by a slight recovery, with share prices at 537.5 at closing, which was a drop of 5.9%. Barclays has denied having any funding problems following the emergency loans. In fact, in order to try and restore consumer confidence the bank’s head of global retail and commercial banking, Frits Seegers, purchased £700,000 worth of Barclay’s shares on Friday.

Ian Poulter at Landsbanki Financials stated: “There are concerns about writedowns and everything else, but the comments Barclays have made to date suggest that is not an issue, as does the fact they are still buying back their own shares.”

The thirty month low in share prices comes just shortly after the crisis that hit Northern Rock, where share prices plummeted by over 80% after it became widely known that the bank had taken an emergency loan from the Bank of England. This fuelled speculation that the bank was on the verge of collapse, and over £2 billion in savings was also withdrawn in addition to a huge tumble in share prices.

Tom Smith
10th November 2007

Tags: barclays, bank, price, value, savings, share, fall

Barclays now offers travel cards

With millions of Brits heading off on their summer holidays abroad, one major consideration is how to deal with taking money abroad.

Some people rely on cash and traveller’s cheques for spending abroad, whereas others prefer the convenience of credit and debit cards, despite the security risks associated with using your plastic abroad. However, there could be a safer alternative available, that combines easy and convenience with increased security.

Pre pay travel cards are available for consumers that want the ease and security of having a card rather than cash when they go abroad, yet do not want to risk loss or theft of their regular credit and debit cards. These cards are also useful for those that want to ensure that they do no spend more than they have budgeted for when they go abroad. Like a pre pay phone, these cards can be loaded with cash before you go on your holidays, and can be used up to the amount that you have loaded onto the card.

Barclays has now decided to offer travel cards to customers, which will be free to obtain and load with cash. However, ATM withdrawals will be charged at 2%, with a minimum £1.50 charge, and there will be a 2.75% conversion fee if it is in a different currency. A Barclay’s spokesman stated: ‘Pre-pay cards are safer than cash and more flexible than travellers’ cheques. Furthermore it helps holidaymakers budget for the spending on their trip by not allowing them to spend more than the balance on their card.’ 

There are travel cards available from other providers as well, and these are the Post Office, which charges a flat fee of £10 for the card and for loading, and from Travelex, which charges 2% of the amount being loaded onto the card with a minimum fee of £10.

Tom Smith
17th September 2007

Tags: barclays, minimum, cards, earn, travelex

The Big Four not up to scratch state experts

Industry experts have stated in a recent report that the four biggest UK banks are not living up to required standards when it comes to offering value and service to customers, despite the fact that they are raking in huge profits each year. Read more

Tags: barclays, hsbc, bank accounts, lloyds tsb, which, natwest

Barclaycard introduces ‘wave and pay’ credit card

In another small step towards a cashless society, Londoners will be able to make purchases on a combined Oyster and credit card from this autumn.

Along with more traditional transactions, the new ‘wave and pay’ card will perform the same function as the Oyster card, a ‘contactless’ payment system which has enabled quicker, cash-free payment at cheaper rates on the London public transport system.

The new product from Barclaycard, called the OnePulse, was developed in collaboration with the consortium which operates the Oyster card, TranSys.

In a further innovation , the card will be enabled for contactless payment for low value transactions. Users will be able to pay for purchases under £10 by swiping the card in a special reader, rather than having to enter their PIN.

The new technology has been successfully roadtested at Barclays’ Canary Wharf headquarters.

The card operates on the typical variable APR of 14.9 per cent, and offers zero per cent interest on products bought in the first six months.

Recent figures released by Apacs show that card spending has risen by 269 per cent in the UK over the past decade, with just a 17 per cent increase for cash.

Tags: Business Finance, GBP, barclays, value, transport, United Kingdom, cent

The cash machine turns 40

On June 27th 1967 personal banking changed for ever with the opening of the world’s first cash machine in Enfield, North London.

The Barclays branch opened the first ever ATM so that customers could access cash outside of the bank’s normal opening hours.

Actor Reg Varney, star of popular sitcom On the Buses, christened the cash point and will always be remembered as the first person ever to withdraw money from a hole in the wall.

In those days, customers needed to feed a special voucher into the machine and enter a unique four digit code in order to gain access to a £10 note.

Principally, ATMs have not changed too much over the last 40 years but their popularity has soared.

By the end of the 1960s the UK had 595 cash points, while the world contained 781. By the end of 2006 there were 60,642 in the UK and 1.64 million across the globe.

“The cash machine, more than any other banking innovation, has had a major impact on the way we all conduct our lives, not just our banking,” said John Warren, head of cash machines for Barclays.

“Forty years ago cash was only available from 9-3 pm Monday to Friday and Saturdays from 9 -12.30 pm and, as cash was king, queues outside branches on a Saturday morning to get weekend money were common. Now you can get money any time, anywhere.”

The cash machine was invented by John Shepherd-Barron who had the idea while taking a bath after he had been prevented from getting his weekend money because he was late to the bank.

Tags: voucher, barclays, business, barron, order, bank

Debit Card – It Was Twenty Years Ago Today

It may be hard to believe, but 3 June 2007 marked the twentieth anniversary of the first ever debit card to be launched. It was the Barclays Connect Card. It wasn’t long before the cards became popular with users, and within just nine months, the bank had issued a million debit cards. In the UK in 2007 there are around 68 million debit cards in issue, on which are made 143 purchases a second, totalling 6.8 billion transactions every year.

There are now more debit cards in circulation than credit cards, and there are 85% of adults who own one, compared with 66% who own a credit or charge card.

Debit cards haven’t stood still in twenty years, and they are now moving into the world of prepaid debit cards and ‘wave and pay’ technology. The former enables customers to out a positive balance onto the card before they begin to use it when on holiday or a shopping spree, and the latter technology lets consumers make relatively small purchases by simply waving their cards in front of the terminal.

Barclays’ own figures suggest that an average customer will make 210 debit card transactions in a year, with a total spend of very nearly £10,000 on the card. Apparently the biggest spenders come from Battersea who spent an average of £15,840 on their cards in 2006. At the other end of the scale, the lowest spenders were from Small Heath in Birmingham who use their cards only 92 times in a year average, with a spend of less than £5,000.

Other figures tell us that women use their cards a quarter as much again as men who actually spend 33% less than women, the figures being £52 for women and £39 for men, per transaction.

The frequency of debit card use is increasing year by year. They are most frequently used in supermarkets, where a third of all debit card transactions occur. This is followed by petrol stations where one in nine transactions take place, and departments stores take one in nineteen of all debit card transactions. Between these three destinations, they take more than half of all debit card transactions. There is a challenge, though, because the fastest growing purchase area is going to be, inevitably, from internet purchases.

Even popular games manufacturers have to move with the tide. Parkers, the makers of the Monopoly game board, have phased out cash in favour of debit cards in a new version. Instead of the garishly coloured bank notes, players will use Visa debit card instead to keep track of their money coming in and going out. There is an electronic machine which takes the card and the banker enters the details of the transaction.

Parker said it has to move with the times and its change to the game reflects the nature of society and technology advancements. Adults now use cash 70% less frequently than they did ten years ago. The electronic game is more expensive than the standard version, but if you’re short of cash…

Tom Smith
16th June 2007

Tags: barclays, Debit card, tide, uk, Credit Cards, spree, twentieth, small heath

Over one thousand jobs to go at Barclays

Over one thousand people employed by Barclays Bank will be losing their jobs in the next three years, as the bank prepares to move its Poole based processing and IT office.

Bank officials have announced that eleven hundred people will have to lose their jobs over a three year period, cutting the workforce at the office from nineteen hundred to just eight hundred. The bank plans to mover operations to a smaller building in the area.

One union official from Unite stated: ‘We are very concerned at today’s announcement which will mean a large reduction of jobs in Poole. Unite does however have robust agreements in place and the bank’s plans are spread over the next three years, so we will be working with the bank to ensure the maximum number of redeployments and voluntary redundancies. We do welcome the news that Barclays will have a new building in the area, albeit smaller, so ending speculation that they may pull out of the area altogether.’

A council official also commented, stating: ‘We are saddened to hear of the job losses at Barclays and will be working closely with them and local agencies to offer as much support as possible to those staff affected. Although the job losses will impact the town in some areas, we will be doing everything in our power to counter the effects. We are continuing to work with Barclays to find suitable sites in Poole that will meet their business requirements and are pleased that they are committed to staying in the local area.’

The Chief Executive of the local council added: ‘The job losses are very regrettable. We will be working with Barclays to set up a strong and helpful network amongst local business and employment organisations to support those affected through information, advice, job searches and retraining opportunities.’

Tom Smith
23rd May 2007

Tags: jobs, barclays, business, losses, employment, cuts, union, IT

£300m cost of severe weather

The extreme weather we have been experiencing here in the UK in recent months is estimated to have cost us a whopping £300 million.

Damage suffered by our homes during the severe storms has left many people counting the cost of repairs, particularly if they do not have home insurance.

Barclays Insurance has revealed that the number of households suffering storm damage increased by 158 per cent in January 2007, compared to the same period last year.

The bank has revealed that 60 per cent of all home insurance claims currently being logged are weather-related, with the average claim being for around £500.

Although people with insurance have to endure going through the process of having their house repaired, the real victims are those who are not insured and must fork out for repairs themselves.

“This [storm damage] is devastating enough for a family so it is some comfort to know that they have adequate insurance and will get the assistance they need to get things repaired and back to normal as quickly as possible,” said Mark Till from Barclays Insurance.

“The extremes we have experienced in the last two months have kept everyone on their toes. From an unseasonably mild Christmas to snow across the country in the last few weeks and everything in between… it’s no surprise that we have seen a huge increase in the number of claims being made for weather-related damage.”

It seems that the severe weather we have been seeing lately may become a part of life in the UK in future years so taking out a home insurance policy may be a wise move.

Tags: country, barclays, Mark Till, betweenâ, policy, surprise, Vehicle insurance, Mark

Biba encourages PPI

Insurance brokers are being encouraged to include payment protection insurance (PPI) with their products.

The British Insurance Brokers’ Association (Biba) is launching a series of new incentives aimed at attracting brokers to selling PPI.

Biba is offering products with enhanced benefits, a more competitive rating structure and improved commissions.

The organisation says that driving PPI will benefit consumers as they will receive better protection on loans, income and mortgages.

The changes include the introduction of partial cover on stress, back-related and pre-existing conditions, as well as the removal of exclusions relating to Aids.

“We can all see that the distribution landscape for PPI is changing as many existing providers continue to be challenged by the regulator and media to improve their sales processes, cover and cost,” said Eric Galbraith from Biba.

“This recent attention has shaken consumer confidence in buying PPI from non-broker channels and the time is right for brokers to seize their market share. We’re providing our members with the right tools to do this.”

Customers taking out any kind of loan should consider PPI, as it offers protection against any unforeseen changes in your personal circumstances.

Biba has promised to give brokers “whatever level of support they require” and has described the new products as “a win, win scenario”.

Tags: rating, Fashion, BIBA, non-broker channels, kind, Eric Galbraith

Hybrid travel, credit card

Barclaycard has teamed up with the people behind Transport for London’s Oyster Card to bring a new era of payment to the UK.

Cubic Corporation, the firm that developed the Oyster Card, has struck a deal with Barclays in London to develop a hybrid card.

It will be useable both as an Oyster Card, allowing travel on the capital city’s transport network, and as a credit card.

The credit card element will work in exactly the same way as it does at present, as will the Oyster Card functions, but low value payments will now be revolutionised.

Holders of the new card will be able to make payments of £10 or under by simply waving the card in front of a receiver.

“Oyster has been a great success making journeys across London, cheaper, easier and quicker, but we want to make Oyster even more convenient,” said London Mayor Ken Livingstone.

“This new deal will mean that from next year people can buy low cost items and take advantage of Oyster fares on the same card, reducing the need to carry cash.”

A £10 limit has been put on the ‘wave and pay’ function for security reasons and the card, which will be tested in London in early 2007, also contains standard chip and pin technology.

Tags: capital city transport, firm, new era, British people, barclays, way, OnePulse, Oyster Card functions

FSA launches payment insurance crackdown

The Financial Services Authority (FSA) is launching a crackdown on the payment protection insurance industry.

FSA officials have expressed concern that some consumers may not be getting the best deal and the group intends to investigate.

Mystery shoppers will put firms to the test, with those who fail being reprimanded.

“Improving sales standards in the payment protection insurance market remains a key priority for us and we see it as an indicator of whether firms are treating their customers fairly,” said FSA managing director Clive Briault.

“Customers should come away from the sale having been given the best possible chance of understanding that payment protection insurance is almost always optional, what the policy will and will not cover, and how much it costs.”

Around 200 firms will come under scrutiny as part of the crackdown, with a number of companies having already been put under the microscope.

In total, ten of those have been “referred to enforcement” and some have been hit with heavy fines.

Tags: protection insurance market, business, best possible chance, consumers, priority, Managing director, barclays, heavy fines

Content insurance claims due to rocket in January

Barclays Home Insurance experts have warned that the level and cost of contents insurance claims in January is likely to rocket compared to claims made over the rest of the year, following a similar trend to recent years. Barclays state that this is due to the increase in thefts and burglaries in homes over the festive period, where thieves target homes because of potential rich pickings in the way of gifts, as well as the increased likelihood of homes being empty due to homeowners being out at parties or visiting relations.

According to Barclays Insurance the number of claims during the month of January can rise by around fourteen percent, and based on last year’s figures the cost of claims could shoot up again this year. In January 2006 there was a rise of fifteen hundred pounds compared to the amount claimed throughout the rest of 2005. Barclays experts state that consumers need to take care to minimize the chances of theft.

Barclays also advise customers to ensure that they have adequate cover in place in order to protect themselves during this higher risk period.

One official stated: “The least you can do to make sure your Christmas doesn’t get spoilt by burglars, is to ensure you have sufficient cover in place as part of your home insurance policy. While your insurance won’t be able to compensate you for the distress a burglary can cause, it will allow you to replace all of your stolen items, so that your Christmas doesn’t have to end in a bitter disappointment.”

Consumers are also advised not to leave present on show, and to ensure that there is someone to look after the home in the event that they have to go out for a long period or are away visiting relations.

The Barclays spokesperson added: “Christmas should be the time of fun and happiness but it has unfortunately also become a time of year where more thefts and burglaries are occurring. Nowadays many presents are high in value but also light and portable, such as laptops, jewellery, gadgets like iPods and BlackBerrys or the latest games console – making them ideal targets for burglars. ”

Tags: barclays, steal, claim, christmas, Insurance, home, theft, contents

Will Barclays going to be taken over by Bank of America?

Speculation is rife over whether the Bank of America may be planning to put in a bid for the UK bank Barclays, which is a household name in banking in the UK. Analysts at Merrill Lynch have voiced suspicions that this bid seems imminent based on recent goings on and speculation. By market capitalization, Barclays is the third largest bank in the UK and the Bank of America the second largest in the world.

According to Merrill Lynch: “Bank of America has previously indicated that the next phase of its expansion is to become a leading global commercial and investment bank. In order to achieve that goal, we believe Bank of America is very interested in acquiring Barclays.” The analyst added: “We think Barclays is the perfect fit for Bank of America, given our understanding of Bank of America’s international aspirations.”

So far this appears to be simply speculation, and officials from Barclays and from he Bank of America have refused to make any comment regarding the situation. However, according to Merrill Lynch the recent resignation of the Chief Financial Officer at the Bank of America is a little suspicious: “While we believe de Molina resigned of his own accord to pursue a CEO role at another company, or a more entrepreneurial career, the timing of his resignation is suspect to us.”

Furthermore analysts predict that the takeover could save the Bank of America around one and a half billion pounds due to reduced corporate and staffing costs, as well as increasing chare prices to generate more in the way of profit. The analysts added: “Furthermore, we think the acquisition of Barclays would enhance Bank of America’s long-term growth rate because it would provide numerous avenues for Bank of America to continue to grow on an international scale.”

Tags: bank of america, takeover, barclays, savings, ceo