Financial groups Essay

To mean solar day, Barclays is peerless of the nigh compelling fiscal groups in the gentlemans gentleman. But its origins skunk be traced back to a much to a greater extent(prenominal) modest byplay, founded more than than than trio hundred years ago in premise close to the Groups globose headquarters in the heart of capital of the United Kingdoms pecuniary district. In the young 17th century, the streets of the City of capital of the United Kingdom were swop with notessmith- curseers, who provided monarchs and merchants with the bullion they indigenceed to fund their ventures almost the world. wiz such business was founded by John Freame and his partner Thomas Gould in Lombard Street, London, in 1690.The name Barclay became associated with the company in 1736, when James Barclay who had married John Freames daughter became a partner. Private entrusting was greens in the 18th century, trusters would victuals their clients g disused depo places secure and lend to reference-worthy merchants. By the mid-nineties in that location were some 100 private blasphemes. In 1896, 20 of these companies came together to convention a bran- wise(a) joint-stock bank. The lede partners of the new bank, which was named Barclay and Company, were already connected by a web of family and business relationships. The new bank had 182 dividees, mainly in the easterly and south-central East, and deposits of i??26 rail rallyinal a substantial sum of m stary in those days. It expanded its branch network rapidly by taking all over new(prenominal) banks, including Bolithos in Cornwall and the south-central West in 1905 and United Counties border in the Midlands in 1916. In 1918 the company without delay Barclays jargon Limited amalgamated with the London, Provincial and South Western bevel to become one of the UKs big five banks. By 1926 the bank had 1,837 outlets in its own name. The reading of todays global business began in 1925, wit h the merger of three banks in which Barclays held sh ars, the Colonial Bank, the Anglo Egyptian Bank and the subject field Bank of South Africa.The new Barclays Bank had businesses in much of Africa, the Middle East and the West Indies. Its name changed to Barclays Bank DCO in 1954, in response to changed economic and policy-making conditions. It became Barclays policy to decentralise, away form London setting up locally-established banks, and 1985 called Barclays Bank. Todays Barclays has tremendous global strength and a reputation for universe jump with modern products and work. As of 30 June 2000, staff universal consisted of 70,300, of which 52,300 were in the UK.Today, Barclays has five business groupings that ar managed as international businesses, reflecting changing node take and the developments taking place in global financial function. Barclays Barclays makes a groom and signifi gouget contribution to the well-being of the UK economy. The banking heavens ac counts for approximately 4. 2 per cent of the UKs national output. In 1998, the financial manufacture contributed i?? 4. 6 billion to administration revenues in mainstream corporation tax. Barclays exclusively remunerative a perfect of i?? 533 cardinal in taxes in 1998. A weighty 30 cardinal transactions are elegant every day through UK clearing systems.The turn of events of ways it is possible to get to financial work is dramatically increase for the benefit of clients. Telephone banking, increased ingressibility to currency machines, retrieves that millions of customers can handling banking services 24 hours a day. take mother for these services is rising as an alternative to branch-based banking and, as a consequence of this the make sense of traditional branched will handle to decline. referable to the closure of branches there has been a decline in the number of antics crosswise the banking sector. Reasons for Change and Actions TakenThe main contend f or the change is the changing needs of the consumers. more(prenominal) pot are working know, leading busier lives with longer days and travelling more and needing fanfare main course to money without having to stand and wait. Customer tastes are becoming progressively diverse, whilst some people homeulate the immediacy of 24 hour electronic door to their money whilst others still prefer personalized, brass to face service from interchangeiers. Having seen that people want more instant en correct to their money Barclays have set up over 25,000 ATMs, expanded their telephone banking service and offer the worlds leading internet banking service.They go down on statistic of One million customers have sign(a) up for our telephone banking service. Our call centres give birth 25 calls every minute. The number of change machined available to customers had more than trebled in the bypast five years. Barclays online banking has attracted more than 450,000 customers since i t was launched in1996 Barclays has to keep its services in the public interest as they face serious competition from international banking corporation, supermarkets pass currency back, and even car manufactures can offer banking services.In the stand hexad years the lend number of trust card issuers has more than doubled. The new-fangled advances in technology, particularly digital information, mean that galore( bet onnominal) of the new competitors in the financial market do not need to maintain a nationwide set up of branches. It is possible, and much cheaper, to provide financial services over the telephone, PC or internet. Due to the increase of competition it has been important for Barclays to choose to lead the way for banking in the future, and withal for them to be careful that they handle their customers needs and expectations.One of the biggest challenges for all financial services providers is to develop a new extension of more sophisticated, flexible product s and services. Customers want and lead straight forward easy access to their coin, whether it be through a property machine, over that phone or the cash desk. At Barclays it is possible for customers to chose what kind of accounts they want, for lesson all in one accounts, such as those offered by Virgin One and Mortgage Trust or they can opt for savings accounts from building societies and insurance companies.Traditional banking providers are offering more advanced current accounts. The number of customers choosing Barclays more advanced current account is increasing. serve such as internet banking inaudible of ten years ago, are now offered as standard by most banks. Barclays has a long history of innovation. They were the archetypal bank in the world to show the cash dispenser, this was determined at their Enfield branch in 1967 having previously launched the first credit card in Europe in 1966. In the 1980s they introduced the UKs first debit card.In October 1998, Bar clays became the first bank to introduce instant banking, and to grant the credit card to offer customer access to their current account and credit card details over the phone. Barclays overhears that to keep up with competition that they will have to appease their long history of investment in production and service innovation, increase the habituate of the technology available to them, ie the internet, e-commerce and telebanking. They to a fault propose to provide business customers with unspoilt euro capabilities and offering their personal banking customers an even broader place of flexible savings, mortgage and loan plans.Barclays has worn-out(a) over i?? 10 million on customer research programmes in 1999 to ensure that they have an in prudence understanding of the needs of their customers and their expectations. In total they surveyed more than 1. 7 million personal customers during 1999. They found that customers were generally satisfied with their financial service p rovider. Customers said that they regarded Barclays as solid, invulnerable and reliable in terms of the funds and business they entrusted in them. even so it was notice that customers wanted an improvement in the one to one service and for individual parcel to be well received.Having heard this Barclays responded by launching a series of initiatives, many of these involved better use of customer data allowing them to anticipate customers needs and allowing them to pre-approve loans, overdrafts and mortgage arrangements. Barclays aims to make a contribution to the community, in September 1999 they announced proposals to contribute i?? 100 million to a new regional Venture Capital Fund, offering loans to growing businesses that are unable to amplification conventional bank funding, this was part of Barclays aim to promote economic regeneration.Barclays has also genuine three national sponsorship programmes, these include, Barclays New Futures, this is the largest educational spo nsorship scheme worth i?? 8 million over eight years, concord in conjunction with Community armed service Volunteers. Barclays Sitesavers, this is the largest environmental regeneration sponsorship worth i?? 3 million over six years, this is a partnership scheme with Groundwork, they are aiming to turn derelict land into in to parks, gardens, play areas and sports grounds.Barclays Stage Partner aims to allow people who otherwise could not give way to go to the theatre, it will cost Barclays a total of i?? 4. 5 million over six years. provided for Barclays to keep up with competition in the millenary it was undeniable for them to widen their market and a merger with the Woolwich was proposed. Both the chief executive director of Woolwich and Barclays realised that they had a shared philosophy, outline and vision, as well as their views on the future of banking being similar.A look at between Woolwich and Barclays would double Barclays share of some(prenominal) the mortgage a nd savings market, provide access to the countrys second largest team up of independent financial advisers and give it stretch out Plan, Woolwichs all-in-one bank account, which was adding a besides 8,000 customers a week. However, due to the merger taking place over 100 Woolwich branches were located within 100 metres of a Barclays, as these were now unnecessary these 100 Woolwich branches were closed, exit the group with a combined total of 2,000 branches.Barclays said that the Woolwich name would be unploughed and would become the mortgage brand for Barclays products. The new merged group now had more than 16 million customers, with both sets being able to attain the advantages from both Barclays and Woolwich. However Barclays continued block banks, closing a further 171 branches across Britain. It was argued that to keep up with their plan and to advance in this world with new improved technology it was no longer necessary to have so many branches.If the bank was not to r ealise this and change its methods of banking it would go out of business. However as Britains second biggest bank it was still difficult for them to justify the closing of so many branches with little pre exemplification leaving 7,500 people with no job and over 40,000 customers, most from rural communities without there local banking service. Barclays said that even by and by the closure of the rural branches people alimentation in those areas would still have a local branch within three miles.This however was not true as now many customers face round trips of twenty miles to alternative branches and fears have been brocaded for the safety of people carrying cash to be cashed into their accounts. In one result a 79 year old woman staged a sit in at their local Barclays Bank to protest against plans to close it. The locals were said to be devastated and worried to be losing their local bank and the effect it would have on businesses. complain groups across the country are co okery sit ins and other forms of disruption to try to deter Barclays from closing their local branches.Barclays quickly picked up on the negative nimbus towards them in the areas they had closed the branches and announced that they had hold a deal allowing customers to pay cash and cheques and withdraw cash from their local post office. The bank arranged this in one hundred fifty-five of the 171 areas were they had closed the banks. Barclays said that they hoped that the deal with the post offices would help to keep them open in areas they were they too were under threat. However locals complained that the new service was no substitute for right measure banking facilities.It is not just Barclays go about these problems, most banks have been closing their local branches and been changing to more modern methods of financial services and issuing money. With more people working, with less time to go to the banks it is necessary for them to be able to withdraw cash at any time of d ay of night. In the past, when less woman worked it was possible for the woman to go to the bank and to cash in cheques and withdraw money, however now, much with both members of the family working it leaves little time to get to the bank, thus the need for instant services, ie.Telephone, Internet banking and twenty- four hour cash dispensers. Though many jobs have been wooly-minded through the closure of all the branches a vast number of jobs have been subject up through telephone banking, with Barclays alone boasting more than twenty- five calls minute. It is oft the people who are scared of change who resist to it, though it may put out them at first, in the long motivate it will benefit them allowing them easier access to their money.