Very Group replaces HSBC after Barclay family asset sale order
- The Very Group has appointed NatWest to oversee its customer loan portfolio.
- This decision follows HSBC's order for the sale of assets owned by the Barclay family.
- The change signifies a strategic move for Very Group to maintain its financing operations.
In the United Kingdom, the Very Group has transitioned to a new banking partner for the management of its customer loan portfolio. This significant change coincided with HSBC, the previous bank handling the loans, ordering the sale of various assets owned by the Barclay family, who are the owners of Very Group. After nearly a decade-long relationship where HSBC played a crucial role in managing an estimated £1.8 billion portfolio, the Very Group sought a new direction. As a result, NatWest has now been appointed to manage the securitisation of the company's buy now, pay later financial products. This move is part of a broader strategy by Very Group to ensure continued support in their financing operations, especially given that around 90% of their sales are facilitated through customer loans. The buy now, pay later scheme has become increasingly popular in recent years, allowing customers to make purchases while spreading payments over time. This financial product has seen its market grow substantially, prompting the need for effective management services to handle the associated loans. The change in bank signifies a pivotal moment for Very Group, aiming to maintain its market competitiveness and operational efficiency after the shift in banking partners. The transition from HSBC to NatWest could also be indicative of the shifting dynamics within the banking sector, especially as financial institutions reassess their portfolios and prioritize different aspects of their operations. The Barclays’ decision to divest a portion of their assets may be part of an effort to stabilize their financial standing amidst current economic challenges. The sale of these assets reflects the broader trends in the financial services industry, where providers are adapting to changing consumer behaviors and regulatory environments. In conclusion, the Very Group's decision to replace HSBC with NatWest is essential for its ongoing operations and its commitment to offering financial options to its customers. By securing a new bank to manage its loans, the Very Group not only ensures continuity in its services but also positions itself strategically for the future, reflecting the necessity for flexible and responsive financial services in today's market.