Legal & General plans direct bank scheme

Legal & General is following Direct Line, Norwich Union, and Scottish Widows by launching a direct banking system.

The financial services group has committed an estimated 1m to set up administration systems for its deposit accounts, but is marketing the move on the back of an advertising campaign designed to avoid over-stimulating demand.

Steven Georgiadis, group account director DMB&B Financial, who is handling the press-based ad campaign, says: “The overall strategy is that good pricing on the products will build the business more than a heavyweight ad campaign.

“L&G still has to launch the products and raise awareness. But we will try to control volume after launch and make sure that the company is not swamped.”

The agency has pre-booked press spots to launch the deposit accounts. Georgiadis declines to confirm an annual ad spend figure, but it is believed that L&G will commit up to 1m to press advertisements over the coming year to establish itself in the market.

The company will also be keen to repair its image after being public rapped last month by the Government for mis-selling pensions in recent years.