Co-operative Bank
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The Co-operative Bank is a co-operative bank trading in the United Kingdom with headquarters in Manchester, UK. It claims to be an ethical bank, and refuses to invest in companies involved in the arms trade, genetic engineering, animal testing and use of sweated labour as stated in its ethical policy. The [ethical policy] was introduced in 1992.
The Bank was formed in 1872 as the Loan and Deposit Department of the Co-operative Wholesale Society. In 1876 it became the CWS Bank. It is now wholly-owned by the Co-operative Group, as part of Co-operative Financial Services Ltd (CFS), together with the Co-operative Insurance Society and the smile internet bank.
Over the years the Bank has gained a reputation for introducing innovations later adopted by the rest of the industry. Since 1974 the Co-operative Bank has consistently offered free banking for personal customers who remain in credit. It was also the first Clearing Bank to offer an interest bearing cheque account called Cheque & Save. In 1991 the Bank shook the credit card market when it introduced a guaranteed "free for life" Gold Visa card.
smile
The Bank launched a separate internet-only operation known as smile in 1999, which, according to surveys, has the highest satisfaction ratings among UK banks and has received many awards in recent years for customer service and online banking.
It has around half-a-million customers.
Smile has its call centre based at a unique pyramid building in Stockport.
Controversy
Whilst the bank, like any other, is run along profitable lines, it does occasionally turn away new business which it feels may compromise its ethical policies. In the 2005/06 financial year, whilst making profits of £96.5 million, it turned away business of nearly £10 million ([Guardian article]).
In June 2005, the bank barred a Christian evangelical group (Christian Voice) from holding an account. They said the group is "incompatible with the position of The Co-operative Bank, which publicly supports diversity and dignity" ([press release]). Christian Voice said the bank was discriminating against it on religious grounds ([press release]).
External links
- [The Co-operative Bank]
- [smile]
- [CIS: Co-operative Insurance], sister organisation to Co-operative Bank