amidst restructuring
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Staff at the small ticket asset finance arm of HBOS face losing
their jobs amidst a restructuring agenda – announced exclusively to
Leasing Life – that will see this division folded into the
bank’s general commercial team.
The move comes after the bank’s announcement earlier this week
that its business banking division will be folded into its
corporate division.This action by the two businesses, both
specialists in the SME market, is expected to result in a loss of
650 jobs over the next 18 months. The asset finance arm of HBOS
that is under threat leases equipment to companies with turnovers
of up to £1m.
This business will continue to exist in the bank’s commercial
team, but will be sold alongside other products such as credit
cards and overdrafts rather than as a standalone product.
While outstanding business of this division will continue rather
than be sold off, new customers will be treated on a case by case
basis.
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By GlobalData “We are continually looking at the best ways to meet the
requirements of our SME customers. Following a review, we have
decided to focus on larger Asset Finance transactions out of the
commercial team,” an HBOS spokesman said.
He added: “We will continue to offer funding to existing
customers requiring traditional asset finance through
Commercial.This review focuses on our SME business and does not
impact our Asset Solutions team [which includes its Lex contract
hire business, motor finance and dealer finance] or Specialised
Industry Finance [aircraft, marine and rail finance] teams, which
include aerospace and marine sectors.”
The 650 staff who face losing their jobs – including those from
the small ticket asset finance division – will be offered voluntary
redundancies or be redeployed within the bank.
Brendan Malkin
