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Royal Bank of Scotland Announces Record Profits … And Is Still Committed To UK Jobs
[20 Feb 2004]
Royal Bank of Scotland - the company that owns Nat West – this week announced that it made profits of over £6 billion; the highest ever recorded by a UK bank.
This was followed by Alliance & Leicester reporting a 12% rise in profits to £525 million.
What is most striking about both announcements has been that both companies have committed themselves to the UK economy by not exporting the jobs of call centre and other back office staff abroad to countries such as India.
Some commentators have even speculated that some of this profits growth has resulted from customers switching from those other banks that have admitted to having large-scale plans for transferring work abroad.
The huge success of those financial services companies that have committed themselves to the UK certainly blows a massive hole in Lloyds TSB’s main argument that it must ‘offshore’ work if it is to remain competitive. Clearly this is not the case if others who have insisted they have not have registered much higher profits
If anything, customer concerns over data protection, objections to accounts being handled abroad, the risk of poorer customer service and the damage to the Bank’s reputation from abandoning UK jobs could all easily outweigh any cost savings arising from off-shoring.
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