Girobank
{{Short description|Former British bank}}
{{For|GiroBank (Denmark 1991–1995)|Danske Bank}}
{{Use British English|date=February 2021}}
{{Use dmy dates|date=February 2021}}
{{Infobox company|
name = National Girobank |
logo = 150px |
type = Statutory corporation (1968)
Public limited company (1988)|
foundation = {{Start date and age|1968|df=yes}} |
industry = Financial services |
products = Postal giro, retail banking |
location = Bootle, Merseyside |
defunct = 2003 |
fate = Privatised |
successor = Alliance & Leicester |
subsid = |
}}
National Girobank was a British public sector financial institution run by the General Post Office that opened for business in October 1968.{{cite web |url=https://publications.parliament.uk/pa/cm200809/cmselect/cmberr/371/37109.htm |title=Post Offices - Securing their Future: Annex A - The development of the post office network |author=Business and Enterprise Committee |publisher=UK Parliament |date=23 June 2009 |accessdate=13 April 2014}} It was initially called National Giro {{cite report|url=https://api.parliament.uk/historic-hansard/commons/1963/mar/04/post-office-giro-system|title=Post Office (Giro System)|date=4 March 1963|work=Parliamentary Debates (Hansard)|pages=165–74|volume=673|access-date=25 June 2016}}{{cite report|title=National Giro Service|url=https://api.parliament.uk/historic-hansard/written-answers/1968/oct/17/national-giro-service|date=17 October 1968|work=Parliamentary Debates (Hansard)|volume=770|page=163}} then National Girobank and finally Girobank plc, before being absorbed into Alliance & Leicester in 2003.{{cite news|last=Collinson|first=Patrick|url=https://www.theguardian.com/money/2003/jul/07/business.postalservice|title=Girobank brand laid to rest after 25 years|newspaper=The Guardian|date=7 July 2003}}
It was the first bank in Europe to adopt OCR (optical character recognition) technology;{{cite book|title=National Giro: modern money transfer|author=Glyn Davies with foreword by James Callaghan|location=London|publisher=Allen and Unwin|date=1973|ISBN=0-04-332054-6|url-access=registration|url=https://archive.org/details/nationalgiromode00davi}} the first bank to offer interest-bearing current accounts, and the first in Europe to offer telephone banking.
History
= Background =
In 1959, the Radcliffe Committee set up to investigate the "Working of the Monetary System in the United Kingdom" recommended the introduction of a giro system, and said that if the main banks did not do this, the possibility of the Post Office introducing it should be investigated.{{cite web |url=https://discovery.nationalarchives.gov.uk/details/r/ea8cf00b-5d7e-4c7c-b8fe-264110303bd1 |title=The National Giro |id=2060 - Santander Group Archives |publisher=National Archives |access-date=27 November 2020 |archive-date=28 January 2020 |archive-url=https://web.archive.org/web/20200128163504/https://discovery.nationalarchives.gov.uk/details/r/ea8cf00b-5d7e-4c7c-b8fe-264110303bd1 |url-status=dead }}
= Planning for the National Giro =
In 1965 a white paper "A Post Office Giro" was published, outlining a system which would use post offices as its business outlets, with automated central processing of transactions.
By September 1965, a central site was chosen at Bootle in Lancashire. The Post Office bought land on the site of sidings of the North Mersey Branch railway. It also built a large, purpose built office and data processing complex for the site, completed in March 1968. The National Giro was the first financial institution in Europe, and probably the world, to be established from the outset to be fully computerised.
= Operations =
The early years of National Giro were unprofitable.{{cite report |url=https://ebha.org/ebha2010/code/media_168677_en.pdf |title=The business of Britain's National Giro, 1968-78: "Socialist euphoria and self-deception"? |last1=Billings |first1=Mark |last2=Booth |first2=Alan |publisher=European Business History Association |date=26 August 2010 |access-date=27 November 2020}} In 1969 National Giro partnered with the Mercantile Loan Company to provide loans to account holders, which was a significant stimulation of account growth.{{cite web |url=https://aim25.com/cgi-bin/vcdf/detail?coll_id=17260&inst_id=124 |title=Post Office: Girobank, Girobank Sale and Privatisation |last=Ball |first=Barbara |website=AIM25 |id=GB 0813 POST 112 Series |date=June 2011 |access-date=5 October 2020}}{{cite web |url=https://discovery.nationalarchives.gov.uk/details/r/8805aa10-2448-4945-a9eb-05c353d080d4 |title=National Giro the first years |last=Hardman |first=N |publisher=National Archives |id=GIRO/NG |access-date=5 October 2020}} When a Conservative government came to power in 1970, there were pressures on the government to close the still loss-making operation. The government, with the advice of consultants Cooper Brothers, gave its approval to a continuation plan. However, charges were doubled for the majority of customers, the 'same day' service was changed to a 'next day' service, and staffing was reduced from 3,500 to 3,000.
By the late 1980s, Girobank was Britain's sixth largest bank.
= Privatisation and beyond =
File:National Girobank (Alliance and Leicester) HQ - geograph.org.uk - 105597 (cropped).jpg
The Alliance & Leicester won a bidding process for the Girobank operation in 1989 after the Conservative government privatised the bank, as part of a programme of sales of state-owned businesses. The transaction was completed in 1990 and by this time the bank was essentially indistinguishable from its competitors, apart from its use of post offices to transact cash business. The contract with the Post Office was to continue to be an exclusive one for a fixed period after privatisation. After privatisation, the bank expanded and opened a £9.5 million operations centre in Wigan.{{cite magazine|url=https://www.constructionnews.co.uk/home/18may90-uk-contract-wigan-monk-to-build-operations-centre-for-girobank/1693312.article|title=18 May 90 UK: Contract – Wigan. Monk to build operations centre for Girobank|date=17 May 1990|magazine=Construction News|access-date=8 January 2019|archive-date=9 January 2019|archive-url=https://web.archive.org/web/20190109012048/https://www.constructionnews.co.uk/home/18may90-uk-contract-wigan-monk-to-build-operations-centre-for-girobank/1693312.article|url-status=dead}}
The personal banking business of Girobank became part of the Alliance & Leicester Building Society. The Business Banking arm continued to use the Girobank name as a wholly owned subsidiary of the Alliance and Leicester, repositioned as a cash handler and credit card processor for retailers and other banks.{{cite news |url=https://www.telegraph.co.uk/finance/2857020/Girobank-disappears-in-AandL-brand-makeover.html |title=Girobank disappears in A&L brand makeover |author=Andrew Cave |newspaper=The Daily Telegraph|date=7 July 2003 |accessdate=12 January 2015}} In 2003 the Girobank brand was dropped, with the business renamed Alliance & Leicester following further consolidation in the Alliance & Leicester group. In May 2010, Alliance & Leicester was acquired by Grupo Santander and the Alliance & Leicester brand was replaced by Santander UK.
The Girobank wording continued in use on some credit slips intended for paying bills, along with the Alliance & Leicester "plus" logo. Some councils were continuing to use the original name "Post Office Giro" in 2011.{{cite web|title=Paying by Post Office Giro|url=http://www.bradford.gov.uk/bmdc/economics_and_finance/tax/paying_by_post_office_giro.htm |accessdate=1 October 2010 |url-status=dead |archiveurl=https://web.archive.org/web/20110615103317/http://www.bradford.gov.uk/bmdc/economics_and_finance/tax/paying_by_post_office_giro.htm |archivedate=15 June 2011 }}{{cite web|title=Paying by cheque/postal order/cash/post office giro|url=http://www.hinckley-bosworth.gov.uk/info/200028/council_tax/375/how_to_make_council_tax_payments/3 |accessdate=1 October 2010 |url-status=dead |archiveurl=https://web.archive.org/web/20110721233248/http://www.hinckley-bosworth.gov.uk/info/200028/council_tax/375/how_to_make_council_tax_payments/3 |archivedate=21 July 2011 }}{{cite web |url=http://www.southhams.gov.uk/index/business_index/ksp_business_rates/sp-business-rates-paying/business_rates-post_office_giro.htm |title=Post Office Giro |website=South Hams District Council |accessdate=2010-10-01 |url-status=dead |archiveurl=https://web.archive.org/web/20110716205012/http://www.southhams.gov.uk/index/business_index/ksp_business_rates/sp-business-rates-paying/business_rates-post_office_giro.htm |archivedate=16 July 2011}}
In March 2009, a campaign was launched to bring back Girobank. Backers included MPs, trade unions and small businesses.{{cite web|url=http://www.fsb.org.uk/postbank |title=Post Bank Campaign|accessdate=1 October 2010 |url-status=dead |archiveurl=https://web.archive.org/web/20101108075343/http://www.fsb.org.uk/postbank |archivedate=8 November 2010|publisher=Federation of Small Businesses}}
= Successors =
Post Office Limited now provides cash services to many banks on a commercial basis.{{cn|date=February 2024}} In April 2013, the Post Office announced it would be launching a retail banking service accessible through Post Office branches under the Post Office Money brand,{{cite news|title=Post Office to launch 'value for money' current account|url=https://www.theguardian.com/money/2013/apr/13/post-office-launch-value-current-account|author= Hilary Osborne|date=13 April 2013|newspaper=The Guardian|accessdate=25 June 2016}} now run by the Bank of Ireland.