London, 5 September 2002 - Zurich Financial Services has today announced the withdrawal of its UK on-line banking service in Spring 2003. Normal service will continue for existing customers in the interim period, but, as of today, Zurich Bank will no longer accept new customers.
Zurich's launch into the on-line banking market has been highly successful and has resulted in some 70,000 formal applications. Today's announcement follows the decision by Zurich Financial Services to refocus itself as an insurance-based financial services provider where it can provide the greatest value for customers.
Fairness and Value for Customers
At the heart of Zurich's approach to customers is a commitment to fairness and value. This commitment is shared with Zurich's partner in this venture, HBOS. Zurich's existing banking customers will be offered the option to transfer to alternative Halifax or Intelligent Finance (IF) bank accounts. In addition, Zurich will make a one-off goodwill payment to customers for any potential inconvenience caused. This will be 5% of net cleared balances as at midnight of 4 September with minimum payment of £200.
Zurich has today begun a communications programme designed to keep customers fully and regularly informed throughout the withdrawal process. In the meantime, the bank will operate as normal for existing customers, with interest being paid and transactions being processed as usual. As part of these moves, Zurich will no longer offer mortgages and loans under its own name.
Chris Gillies, Managing Director of Zurich Bank, said:
"Following our announcement that we are withdrawing from on-line banking, our priority is to ensure that all our customers are treated fairly. At Zurich, we are committed to fairness and value in all we do and we strongly believe the package we have put together for our customers reflects this."
Grenville Turner , Spokesman for HBOS Group, added:
"HBOS looks forward to offering Zurich Bank's existing customers alternative banking arrangements through its market leading Halifax and Intelligent Finance (IF) brands. These arrangements will feature value for money products and customer choice. We are also delighted to be continuing our existing relationship with Zurich through the provision of mortgages via the Zurich Advice Network."
-ENDS-
For more information please contact:
Debi Isaac, Zurich Financial Services 07785 306 092
James White, GCI 07887 848 896
Editor's Note:
The Zurich Financial Services Group is an insurance-based financial services provider that focuses its activities on its key markets of North America, the United Kingdom and Continental Europe. Founded in 1872, Zurich is headquartered in Zurich, Switzerland. It has offices in approximately 60 countries and employs well over 70,000 people.
Zurich Financial Services, (UKISA) is part of the Zurich Financial Services Group and comprises the Group's operations in the UK, Ireland and International Businesses.
