Barclays to tell 7000 customers to do more biz or leave
Published
Barclays have identified some 7000 clients whom the bank is going to tell to do more trading or find another bank. This is a measure to improve the profits of the bank. The bank has introduced a system, called Flight Deck, which ranks every customer of its trading unit by the return they generate on the bank’s capital. This will help the bank to prioritize its most lucrative relationships and remove those who have become a drag. Since 2014, the bank has edged out 17,000 clients as tougher capital rules make dealing with many smaller firms less profitable. Flight Deck has identified 7000 who may need to go. As a rule, Barclays wants at least a 10% return on capital from every customer, an officer of the bank said, adding those who do not currently meet the threshold will be given the option to do more business with the bank to get there; if they cannot, then they will have to leave in a managed transition.
