Virgin looks to expert in push to be bank

The firm is in talks with Sir Brian – formerly chief executive and latterly chairman of Lloyds TSB – about becoming chairman as it prepares its board line-up ahead of a launch as a fully-fledged bank later this year.

Virgin Money is buying small regional private bank Church House Trust to fast-track its aims to secure a banking licence. And the group is widely seen as a front runner to bid for the "good" part of nationalised bank Northern Rock.

Sir Brian, 78, has strong links with Virgin Money and advised the group on its attempt to secure Northern Rock before the Government took it into public ownership in 2008.

He is well-respected in the industry, having notched up a 49-year career at Lloyds that saw him lead the group through its merger with TSB in 1995.

The banking stalwart joined Lloyds in 1952 and rose up the ranks to become chief executive in 1983, later appointed chairman in 1997 before retiring in 2001.

Knighted for his services to banking in 1994, he was also president of the British Bankers' Association and has held a number of directorships at firms including Carphone Warehouse and Next, where he was chairman.

Virgin Money declined to comment on reports of Sir Brian's appointment, but the group is expected to make an announcement by the end of the week.

Headed by chief executive Jayne Anne Gadhia, Virgin Money has been looking to launch as a full bank for some years and is said to want to capitalise on the current lack of confidence in existing players following the financial crisis.

It says on its website that it wants to "offer a new kind of bank in the UK – one where everyone benefits. Where customers can be confident of getting a fair deal and great service. Where we can make a fair but not excessive profit".

As well as its interest in Northern Rock, the group is also touted as a potential bidder for the assets being sold by part-nationalised Lloyds Banking Group and Royal Bank of Scotland.

The Government is also keen for new entrants to the sector following the dramatic consolidation seen in the wake of the financial crisis.