Zurich Financial Services and the Bank of Scotland are entering into a joint venture, subject to reg...
Zurich Financial Services and the Bank of Scotland are entering into a joint venture, subject to regulatory approval, to provide banking services and loan products to Zurich's retail customers.
The joint venture company will offer Zurich-branded products and distribution is to be through existing channels, such as Allied Dunbar and Eagle Star Direct.
In a separate but related development Zurich's personal financial portal, which launches in the summer, will also distribute the products. The personal financial portal intends to provide Zurich's customers with online banking and insurance products, as well as a range of services such as share portfolio valuations and market news.
Sandy Leitch, Zurich's UK chief executive, said: "This is an important strategic move by Zurich. It fits with our goal of reaching more customers and increasing our product range through strategic alliances. It is also a significant step towards the development of our personal financial portal in the UK this summer."
Zurich hopes the 50:50 joint venture broadens its product offering while giving it access to UK retail banking and the clearing system.
The deal is further evidence of Bank of Scotland's 'partnership' strategy which has seen it make strategic alliances with a wide variety of commercial organisations, such as Sainsbury, Centrica and GUS, to provide financial services.
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From 1 March