Clydesdale Bank launches London lab to fight the banking problems of tomorrow

CYBG, the owner of Glasgow-based Clydesdale Bank has announced plans to open a lab in one of London’s wealthiest districts to allow customers to have a direct input in the future products it offers and technologies it develops.

The banking group said that Studio B, which opens on Kensington High Street at the end of this month, has been designed to “empower bank customers to take back control of their finances” and tackle the big banking problems of the future.

The initiative comes as CYBG published findings of a survey commissioned by Studio B that revealed ‘Generation Rent’ faces the prospect of having to save for an average of 59 years to get on the property ladder.

In the London of Kensington and Chelsea, where the pioneering office is located, the wait to afford a 25 per cent deposit on a flat would be up to 193 years, the research found.

YouGov surveyed London renters aged 18-40 about their current savings. Used in conjunction with property prices supplied by Zoopla on-line estate agency, the Studio B analysis found that:

The researh also founf that given current saving patterns, most London home-buyers would only be able to afford a deposit on a flat when they are in their seventies and would in effect be buying their retirement home.

Chief operating officer Debbie Crosbie said the Studio B initiative is one of CYBG’s “key investments this year”, with the “look and feel” of the lab expected to be “quite different to a normal branch”.

Although customers will be able to come in to pay in a cheque or open a new account, Ms Crosbie said the purpose of the venture is to introduce them to different ways of doing those things while getting their feedback in the process.

Ms Crosbie added that the banking group chose Kensington as the location for Studio B, which will be a one-off venture, because of its high footfall potential rather than because of the wealth of most of its residents.

“We want to create and test a range of experiences that cater for all customers,” she said.

“We want to make sure we cater for a range of needs, including more vulnerable customers and those with no experience of technology.”

To celebrate the launch and underscore its commitment to finding innovative solutions to the great financial issues, Studio B said it is offering people the chance to live rent-free for a year in a penthouse apartment close to its Kensington High Street store.

Clydesdale and Yorkshire Banks will also match-fund money the winner of its launch competition saves during the year to put towards a deposit on their own home (up to £2,000 per month).

Studio B will host a nationwide competition on launch day (April 27th). Finalists will compete to prove that they are fit to own their own home by completing practical tasks such as cooking, gardening and DIY, with a celebrity judge deciding the winner.

Helen Page, Group Innovation & Marketing Director, said: “We are committed to helping people solve the financial challenges of tomorrow and take back control of their finances. This competition will put one lucky winner well on their way to achieving one of life’s biggest financial goals – getting on the property ladder.

“We know how difficult it can be for younger generations starting out on their own. The whole point of Studio B is to work with the customers of tomorrow to find the most innovative solutions to the problems they face. Studio B will help customers build a better relationship with their money.”