Bradford & Bingley Poised to Launch Web-Based Funds Supermarket

Bradford & Bingley, the former building society set to go public with a £1.2bn-£1.5bn valuation, is preparing to unveil its plans for a web-based funds supermarket. The move is part of the company's efforts to diversify its revenue streams and move away from its traditional mortgage bank roots. As part of this initiative, Bradford & Bingley has partnered with FundsHub, a company backed by Chase Manhattan, to outsource the infrastructure for its funds supermarket.

Key Takeaways:

• Bradford & Bingley is set to launch a web-based funds supermarket, allowing customers to buy and sell ISAs and unit trusts online.
• The supermarket will be powered by FundsHub, a company backed by Chase Manhattan, marking a significant partnership between the two organizations.
• Bradford & Bingley's chief executive, Chris Rodrigues, is seeking to develop alternative revenue streams to move the business away from its traditional mortgage bank roots.
• The company has signed up Mark Lund, a former executive at Virgin Direct, as its new CEO for the funds supermarket.
• Earlier this year, Bradford & Bingley acquired John Charcol, an independent financial adviser network, aiming to reposition itself as a financial intermediary.
• The company plans to utilize its branch network and internet channels to sell other people's products, as part of its reinvention strategy.
• The use of outsourced infrastructure will allow Bradford & Bingley to get its funds supermarket up and running more quickly and cheaply than developing it in-house.

Statistics:

• Bradford & Bingley has 2.7 million members.
• Members are expected to receive £500-£700 worth of shares each.
• The conversion of Bradford & Bingley from a building society to a bank takes effect on 4 December.

Sources:

• Condé Nast Traveller, unknown date
• Financial Times, Tuesday, 30 November 1999