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Mar 09, 2010 -- British banking upstarts challenge giant monster mega-banks

The United States is not the only place in the world that loves to hate the giant monster mega-banks. England has a similar distaste. Fortunately, the British capitalist sector has stepped into the banking black hole with alternatives to the giant banks.

Leading the charge are U.K. supermarket giant Tesco and Virgin mogul Richard Branson with Tesco Personal Finance and Virgin Money, respectively. Notice that neither of these newfangled banks uses the word "bank" in the name! "Bank" has become a four-letter word to the people of Britain, much like here in America.

One other British upstart, Metro Bank, has decided to use the dirty word for ease of identification as they step into the market.

In the United States, we already have similar alternatives in place. They're called small community banks, credit unions and online banks. ING Direct, one online bank, started out with focus groups to determine what people hated about banks. Then they built their business model by doing exactly the opposite. ING is also branchless, which allows them to offer better deals that traditional giant banks.

Finally, another alternative that's available to members of the military is USAA for banking.

Arianna Huffington has an initiative to encourage people to give giant banks the boot. Clark encourages you to think about it.

Unfortunately, Clark won't be able to answer any questions submitted via commenting. If you have a question, please try posting it to our message boards.

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What others are saying

  • Tesco ruthless?
    Michael - let me guess you voted Labour? Tesco is only "ruthless" in the sense that Walmart is "ruthless" = i.e. they are both very successful retailers and deliver terrific quality and value
  • "Mega Banks"
    I was sorry to read your comment on my posting, Michael. Sorry, for you! I reread my comments and nowhere did I mention that my daughter is a "teller". Tellers are hard workers and should not be denigrated. However, my daughter has been with Wells for many years and she holds a very responsible position. All I know is that Wells Fargo is a great place to work and do business and they value their customers. I am tired of people demonizing businesses, whether they be banks or insurance companies, etc. Life is much too short to be angry all the time. Take a deep breath and thank God that we are "alive and kicking!"
  • British Banking
    As an Englishman living in the USA, let me assure everyone that the only entity worse than a mega bank is Tesco. If anyone needs to find the definition of a ruthless corporation, then look no further than Tesco.
  • replies
    Sonya King-Because your daughter works for $10/hr. as a teller at a Monster Mega Bank, that's the reason you support these banks along with your misguided belief in them? Dumb. You're the one who is uninformed.

    Debbie Downer-ING is currently being bid on by many entities, nobody has committed yet and when it does sell it will most likely just disappear in name only.

    David-Most likely ING will be bought by an Asian bank, it will not be sold to a US entity.

    TRex and drew are right on, but drew, those China workers in a few years will no longer need to rely on the US consumer to sustain employment due to other countries emerging economies and us becoming more irrelevant in the global economy. China has a labor SHORTAGE,wouldn't that be nice? Their economy is only going UP and for a long long time.
  • Rhetoric against ALL "big" banks?
    Just like all those poor factory workers in China will be out of jobs if we "buy American". The GMMB have been nothing but predators towards their customers. I say good riddance!
  • Rhetoric against ALL "big" banks?
    GMMB's took taxpayer funds to keep their operations afloat due to poor decisions at the top management level. The Move-Your-Money campaign to change from a GMMB to a community bank/credit unions in no way reflects personally on the branch employees of a GMMB. However if enough people move their money away from a GMMB, then the community banks and credit unions will then have to hire more employees. It's a simple matter of voting with your money. Way to go Clark!
  • ING Direct
    Debbie - ING Direct is going nowhere - BUT ING has promised to divest itself of the operation within 3 years - they should get a pretty good chunk of change for it - no idea right now who will buy it (maybe a nonbank like Walmart or Fidelity).
  • ING Direct
    I thought ING was planning to withdraw from the U.S.?
  • Rhetoric against ALL "big" banks
    Clark, I have heard you rail against "the BIG banks, linking them as "one". Our daughter has worked for one of those "evil" banks that A.H. wants to destroy. Our daughter, along with many others, go to work everyday. They work hard and they put the customer first. Wells Fargo is a good employer who employs many average people who like their employer and their job. They are good people. I've read "The Huffington Post" urging customers to with-draw their money from Wells with little thought of the regular people who work inside those banks. And now you are supporting her, Clark. That disappoints me. I expected better of you. Give some thought to the many, many employees who have to hear this rhetoric that has become a "rallying" cry of the uninformed. I don't care what they say at the H.Post but I do care when you start quoting Adrianna. She with her lifestyle is hardly the one to quote regarding "big" banks.
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