Corporate Responsibility Review
Customer Strategy
Market leading products
Our starting point in CR is our core product agenda. We aim to provide our customers with better value products than the competition. We have a relationship with two out of every five households in the UK. Last year, we received 3,912 mentions in the best buy tables, considerably more than any other big bank.
The Ultimate Reward Current Account, launched in February 2007, is believed to be the best value packaged account in the market. In May, we launched a ‘beat and freeze’ campaign, aiming to beat customers’ insurance quotes and freeze their premiums until 2010.
Customers
In July, HBOS launched the largest ever branch expansion programme undertaken in Australia. We plan to open 160 branches on the East Coast over the next few years. Continuing to expand CR through our international operations is a key focus during 2008.
HBOS was the first financial institution to report how much money is held in customer ‘dormant’ accounts and the first to launch a campaign to reunite customers with their forgotten funds. We have reunited customers with over £14m so far. From January 2008, Halifax will search for remaining ‘lost’ customers, with an average balance of just £273. Halifax will also register details of unclaimed dormant accounts on the Unclaimed Assets Register.
Responsible lending
We advocate the fullest possible sharing of data between banks. Doing so provides a clearer picture of customers’ lending commitments and improves lending decisions. We share full data on new products and up to 95% on historical products. Some other banks share data only on new customers but not existing customers. We are lobbying to change this situation.
We believe in providing our customers with a clear and transparent summary of their accounts. HBOS publishes summary boxes setting out key information for consumers on a range of products including: payment protection insurance statements, credit card statements and estate agency agreements.
Most of HBOS’s lending is secured lending in the form of mortgages. The average loan to value across our mortgage book is 44%. The average income multiple has remained essentially the same for over 15 years, demonstrating a long history of prudent lending.
Financial inclusion
We are the first major bank to publish a target (15%) for new social banking account openings. We publish progress towards meeting this on our website every quarter. We exceeded this target in 2007.
HBOS installed 100 new, fee-free ATMs last year in areas of need across Scotland and the North of England. The fee-free ATMs dispensed £84m, and saved customers £1m in charges had the machines not been fee-free.
We are the only major bank to have launched a Christmas Savings Account for our social banking customers. This provides an easy way of saving for Christmas, with the financial strength of HBOS behind it. On maturity customers can take their savings in cash or High Street vouchers. Up to 100,000 of our social banking customers will be offered the product in 2008.
We aim to lead the sector on disclosure. Our Financial Inclusion Report contains detailed information on our performance and marketing in disadvantaged areas.