aldermore bank, round table: sme research savings
TRANSCRIPT
Aldermore‟s overview
Lending book to SMEs £850 million
Lending to Residential
Mortgages
£600 million with more than
4,500 customers
Retail Deposits £1.6 billion deposits and
over 70,000 deposit
accounts
Total Assets £1.9 billion
Raised additional
equity capital of £36
million from
Centerbridge Ltd
(May 2012)
Broke even two
months earlier than
planned & after only
two years of trading
(June 2011)
Aldermore – „Shaking-up‟ British Banking
A new, dynamic and vibrant bank, offering straightforward products to the consumer, combined with
great value and service to UK small and medium sized businesses (SMEs)
We're unencumbered by debts, legacy issues, historic loan books, securitisation, nor are we linked to
international capital markets. We use a traditional banking model: raising deposits from
consumers, and lending to homeowners and SMEs across the UK. It's that straightforward
Championing simple and straightforward products – no gimmicks or tricks
Tailored funding solutions to help achieve customers’ goals
Adopting the strategy of assessing cases based on their own merit rather than
relying on automatic credit scoring
Our awards
Specialist Lender of the Year
NACFB -Specialist Lender of
the Year 2010 Bridging & Commercial
Awards „Best Commercial
Lender' in 2010 & 2011
Moneynet “Highly
Commended” Best Online
Savings Provider 2012
Business Moneyfacts Highly
Commended „Best Factoring &
Invoice Discounting Provider‟
2011
What Mortgage Winner
„Best non-standard product
provider‟
mortgageforce™
„Best Emerging Lender
„ 2011
& Highly Commended
Best Advisor only lender
Best ISA provider 2011
Best ISA provider 2012
5 Stars Award
(Residential Mortgages)
Moneyfacts Highly Commended
„Best Notice Account Provider‟
2011
Highly Commended „Best Fixed
Rate Provider‟ 2010
Best Specialist Lender 2011
FT Adviser 5 Stars Award
(Residential Mortgages)
Moneyfacts Highly
Commended
„Best Notice Account
Provider‟
2010
SME champions
All of our retail deposits are lent to UK homeowners & SMEs
As a UK-based bank, we're committed to supporting British SMEs. We
appreciate the importance of SMEs to the UK economy, and the huge
challenges recent years have presented and unlike other banks that are
retrenching, we are accelerating:
Fuel card – 3p discount
Aldermore Business Confidence (ABC) – a tool to manage
budget and cash flow
Difficult times for SMEs
Seen as the engine of the economy, SMEs are struggling to get out of neutral in the
current recession climate
Over 60% of SMEs are holding on to an average of £190,000 in the bank to act as a
buffer in case of future financial difficulty, rather than investing in growth*
Almost 50% of SMEs feel that the economy is too uncertain to invest in growth and are
waiting for a change in the economic picture**
As Champions of the SME market and experts within the savings industry, we felt we
knew we could do something better
In addition, Aldermore wanted to understand why customers weren’t active within the
business savings market
* Source: Venture Finance Survey
**Source: YouGov
YouGov Research - Methodology
Online survey of 1,011 UK senior business people in small businesses by
YouGov
Asked about:
Satisfaction with current savings account provider
Considerations of switching savings account provider and factors that
influence decision
Respondents: Proprietor, Chairman, CEO, Partner, Managing Director, Non-
Executive Director, amongst others
Businesses are dissatisfied with current provider
Interest rates on my savings account(s) are competitive
90% Disagree
10% Agree
Satisfaction with current customer service
69% Not satisfied
31% Satisfied
Satisfaction with current savings account(s)
91% Not satisfied
9% Satisfied
Businesses will switch if it‟s easy and the rates are
good
Process of switching savings account(s) provider
80% Switching is complicated
20% Switching is relatively simple
Would switch due to competitive interest rates
58% Yes42% No
Customers‟ Channel Preferences
Customers’ Support Channel Preference Score
Account Opening Preference Score
Introducing Aldermore Business Savings
A deliberately simple offer.
Great rates
Online account opening & maintenance
Customer Service
Great returns, effortlessly.
Launching Shortly…
Products & Features
1 Year Fixed Rate Business Savings Bond 3.25% gross/AER
6 Month Fixed Rate Business Savings Bond 2.35% gross/AER
Open an Account electronically with just £1000
Complete account opening online in 15 mins
14 Day Cooling Off / Additional Funding
Conclusion
We have continued to lend during a period of significant
retrenching and economic downturn
We are British champions
Experts in the SME market and savings industry
We recognise that SMEs are underserved
Launching business savings is our first step to shaking-up British
banking for ever
Appendix I
4% 6%14%
19%25%
25%
7%
Age of business
up to 1 year
1 to 2
>2 to 5
>5 to 10
>10-20
>20-50
69%
15%11% 6%
Size of business
1 to 9
10 to 19
20 to 34
35 to 49
*
*
*Source: YouGov
Appendix II
Phillip Monks - Chief Executive Officer • Established Europe Arab Bank in 2005
• 2003 - CEO of Gerrard Investment Management
• 1990-1998 - held senior roles in Barclays Bank, including Head of Barclays
Private Bank in Geneva; Head of Corporate Banking in NW; and latterly Head
of Barclays Corporate Banking business in London, Midlands & SE
• At Aldermore Phillip is responsible for the overall strategy and performance of
the Bank, financial and non-financial. He leads our relationship with our
shareholders and is the face of Aldermore when it comes to the media, the
FSA, the Government and potential investors.
Simon Healy - Head of Savings • Prior to joining Aldermore, Simon was director of savings at Heritable Bank
and Icesave
• Previously Simon was Senior Savings Operations Manager at Capital One
• Working closely with the treasury and finance functions, Simon is
responsible for Aldermore’s straightforward range of savings products that
provide our customers with consistently reliable rates of interest.