Revamped Halifax to build on its heritage

In one of his first interviews since being appointed head of Halifax in March, David Nicholson told the Yorkshire Post that the new TV, radio and press campaign in September will use real colleagues not actors.

“We want to focus on the traditions of our building society roots, the real friendliness and warmth. That’s where trust comes from,” he said.

At the heart of the relaunch will be a focus on higher savings rates, better mortgage products and a current account offering that will challenge the ‘Big Four’ banks.

“We will offer simple, straightforward, transparent products,” said Mr Nicholson, who has taken on the role of managing director, Halifax Community Bank. “We are also planning a further move in the savings market in the autumn.”

As part of the drive to meet customer needs, all 670 Halifax branches will open on a Saturday from next month onwards.

“Customers are out on the high street on a Saturday, it’s a convenient day for them. It’s what our customers are telling us they want.”

The multi-million pound advertising campaign will move away from the ‘Howard’ all-singing, all dancing ads which had become outdated. The recent fictional radio station ads were also seen as fairly cringe-worthy, but insiders believe a move to advertising agency Adam & Eve earlier this year will remedy this.

“Our old way of communicating through ‘Howard’ is no longer appropriate,” said Mr Nicholson. “He did a fantastic job at the time, but we have moved into different times.”

The new campaign will focus on colleagues and the role they play, with workers coming together to form the Halifax ‘X’ that was made famous in previous campaigns.

As part of a drive to reduce costs, Mr Nicholson said Halifax has ambitious targets to increase the number of online customers.

He said that around a half of active banking customers, some five million people, are expected to carry out transactions online within the next three years.

Asked about new Lloyds’ chief executive Antonio Horta-Osorio’s plans to make Halifax compete against Lloyds, he said he welcomed the decision.

“Customers see the two businesses as very different. They are looking for different things from the products,” he said.

“We will get some business moving from Lloyds to Halifax, but we will also see business moving from Halifax to Lloyds. We want Halifax to be a challenger brand.”

He said Halifax will build on its heritage as number one in mortgages and savings, but it also plans to become a serious challenger to the Big Four current account providers.

“We’re offering a great current account provision for people who are maybe fed up with how they’re treated, or they want their bank to open on a Saturday,” he said.

Lloyds has pledged that Halifax will be at the heart of its future growth strategy, with plans to revitalise the iconic Yorkshire bank.

Mr Horta-Osorio believes the Halifax brand became lost following the takeover by Lloyds in early 2009 as management was so focused on the integration of Lloyds and HBOS.

He is now committed to return the brand to its traditional roots.

“Halifax has always been more irreverent, more attitude based and more transparent. We want to revitalise that tradition,” he added.

“The heritage of Halifax is fantastic, we want to revitalise it on its strengths.”

His aim is to get Halifax to compete head on with building society Nationwide and his former employer Santander, which bought a number of former building societies including Bradford & Bingley and Abbey.

“Halifax is going to fight head on with Nationwide, Santander and Lloyds and the best one will win,” he said.

Earlier this month Lloyds announced plan to axe 15,000 jobs and halve its international presence as part of plans to save £1.5bn a year by 2014.

This will bring total job losses at the 41 per cent state-owned bank to almost 45,000 since it was formed in 2009

“We have to do this, ” said Mr Horta-Osorio. “The bank has lost money and is losing money as you saw in the first quarter and we have to get this bank back on its feet to support the UK economy and to get it profitable in order to pay taxpayers’ money back.”

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