Virgin Money has unveiled its long-awaited first current account: The Virgin Essential Current Account. It is, says Virgin Money, designed to be simple, fair and transparent. Its appeal will be limited. For starters, it is available only to customers resident in Scotland and Ulster, writes Douglas Blakey
No doubt before long, it will extend to the rest of the UK but the limitations of this debut account will restrict its appeal.
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Want a cheque book? Nothing to see here, move along-the Virgin account offers no cheque book.
That may not be an issue for younger customers who have never used cheques or for older customers for whom cheques are becoming a distant memory.
The lack of an overdraft facility from the Virgin account will dissuade a largeish chunk of potential customers: this is an account that does not allow the option to go into the red.
One might then expect that with no cheque book and no overdrafts, Virgin’s first current account would offer class leading digital banking services.
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By GlobalDataNot so.
If customers want to make a Faster Payment, set up or cancel a standing order or direct debit, the Virgin account does not offer such services online.
The internet banking element is limited to checking account balances and recent transactions and not a lot more.
Anyone wanting to set up a standing order, direct debit or make a payment has to use a Virgin branch.
This is however early days and just the first in an expected series of current accounts from Virgin – the range will, say the bank, offer choice and diversity.
If it is to appeal to the mass market and mass affluent sectors, it will need to do a little better than this, in particular as regards its digital capabilities.
On a positive note – and the writer wants to be positive regarding Virgin and has written elsewhere about the highly impressive Virgin Money lounges being rolled out – Virgin current account holders will be eligible for Virgin Group discounts.
Examples include one month’s free Virgin gym membership and 10% discounts on Virgin Trains.
There is however a catch; as a regular on Virgin’s overpriced and overcrowded Euston to Glasgow mainline, the 10% discount applies to selected advance fares. That means if you want to travel on a Tuesday afternoon and can book three weeks in advance, you might grab a discount.
The Friday evening fare will doubtless remain a three figure sum on a par with the cost of a flight to the Continent.
In contrast to the Virgin’s virgin current account, Tesco’s debut current account suddenly appears very impressive.
