Q&A: DAVID WAKELEY, VIRGIN MONEY

The introduction of the field force is the first major initiative of David Wakeley, who took over as managing director of Virgin last June.

Wakeley came from the road service and travel company NRMA, where he had been general manager commercial and general manager sales and marketing. The Sheet spoke to Wakeley last week.

David Wakeley: We had some customers who told us they would like to discuss the mortgage product face to face. It is a complex product and it is understandable that a borrower would want to sit down with someone and ask questions.

Our sales people will sell the full Virgin product range and will have the necessary qualifications to sell superannuation as well as membership of the mortgage industry peak body.

It is important for us to set ourselves apart in everything we do. We will remunerate on sales plus customer satisfaction. To measure that we will call every client to run through a checklist and we will mystery shop.

John Kavanagh: Some commentators see Virgin Money as a credit card issuer yet to prove itself in its other markets.

David Wakeley: The number of customers who have all three products is growing. Our message that we enter markets that are ready for a shake-up appeals to three groups.

One group of customers is dissatisfied with the majors and wants something different. Another we call the young at heart, looking for something fresh and smart and looking for a provider that will push the envelope. 'Young at heart' does not mean they are all young people.

The third group is made up of people who find Richard (Branson) appealing. They like the way he has combined business success with charitable and environmental work.

He is seen as an ethical person and that rubs off on the company. Virgin is a vehicle for change.

John Kavanagh: Inflow of $160 million into superannuation does not sound like a big number.

David Wakeley: The people we spoke to in the industry told us a successful new investment product would pick up $50 million in its first year. We did twice that. The portfolio is growing steadily and the churn is very low.

We have had a fully online application process for the past three months and that has led to some growth in membership.

John Kavanagh: Speaking of online processes, have you been able to take advantage of reforms to the Consumer Credit Code that allow for more electronic communication?

David Wakeley: This month we will start our first round of email-only statements for credit card account holders. The change has to be at the customer's request.

We have done some lobbying with government for more flexible electronic funds transfer capabilities.

John Kavanagh: The big four banks and the bigger regionals have been promoting higher customer service standards and a more ethical approach. Are they cutting your grass?

David Wakeley: They are doing a good job of telling people that their customer service is better. Consumers are not going to be persuaded by an ad. I am not sure they do think the service is actually better.

Our internal surveys tell us our customer satisfaction rating is high. Branson is on your case from day one to make sure service is up to standard.

We recognise that the big banks are working hard on service but they are very big organisations. Things happen slowly there.

John Kavanagh: Have you got plans for new products?

David Wakeley: We have a couple of things on the go. We are looking at personal loans, secured and unsecured. We think that market could use a shake-up.

We are looking at some credit card variations. With 750,000 cardholders, there is scope for diversification. We are doing some research on what other types of cards our customers want.

We are marketing better than our competitors in cards. We have held firm to our point of difference. Last year, as interest rates went up three times for a total move of 75 basis points, we went up 34 basis points. It affects profit but it was important for us to maintain that identification as a low rate card.