Skip advert
Advertisement

Volkswagen hedges Brexit bets with UK banking licence discussions

Volkswagen Group investigates UK banking licence to secure future ahead of post-Brexit regulatory changes

Volkswagen has confirmed it is in discussions with the Bank of England to secure a UK banking licence so that it can continue offering PCP and other finance deals following Brexit.

Volkswagen Financial Services (VWFS) is currently the UK’s largest car finance provider. It operates in the UK under a German banking licence, an arrangement facilitated by the EU ‘passporting’ system. This allows banks and other financial services to set up shop in countries across the EU and EEA (European Economic Area) without having to obtain individual licences in every country in which they operate.

Advertisement - Article continues below

Once the UK leaves the EU it will likely be judged a “third country” by the passporting system – an assessment that would bring with it trading restrictions and limitations. Volkswagen has confirmed it is in talks with the Prudential Regulation Authority – the Bank of England’s financial services regulatory body – to obtain a full UK banking licence and ease any future difficulties such a scenario might bring.

VWFS’ chief executive, David Maloney, told the Financial Times: “Discussions with the UK regulators, in particular the PRA, may result in VWFS making an application for UK banking licence. Should we pursue this path and establish a UK regulated retail bank, it would diversify our funding sources whilst helping to alleviate post-Brexit uncertainty and ensure we continue to provide lending products.”

VW’s mooted UK banking licence follows a similar move by Ford, which started offering retail savings accounts to consumers earlier this year under the Ford Money brand.

Ford blames Brexit for £65million loss. Read the full story here...

Skip advert
Advertisement

Find a car with the experts

Skip advert
Advertisement

Most Popular

Car Deal of the Day: 10k miles a year in Cupra’s Terramar for under £300 a month
Cupra Terramar - front full width

Car Deal of the Day: 10k miles a year in Cupra’s Terramar for under £300 a month

The Cupra Terramar is an appealing family SUV that looks stylish but offers plenty of practicality. It’s our Deal of the Day for July 5
News
5 Jul 2025
New Volvo XC60 2025 facelift review: big-selling SUV gets a new lease of life
Volvo XC60 facelift - front tracking

New Volvo XC60 2025 facelift review: big-selling SUV gets a new lease of life

This refreshed Swedish SUV focuses on familiar areas of strength to take on BMW and Audi
Road tests
4 Jul 2025
Car Deal of the Day: MG ZS gives a big SUV feel for a miniscule £194 a month
MG ZS - front cornering

Car Deal of the Day: MG ZS gives a big SUV feel for a miniscule £194 a month

The MG ZS is an easy car to like and live with. It’s our Deal of the Day for 3 July
News
3 Jul 2025