Market consolidation set to springboard with Coventry / Co-op merger, says Phoebus CEO

23 April 2024

In light of the proposed merger between Coventry Building Society and the Co-operative Bank, please find below a comment from Paul Hunt, CEO at Phoebus Software, the mortgage and savings servicing provider for financial institutions.

Paul Hunt, CEO at Phoebus Software, said: “Coventry Building Society’s proposed acquisition of the Co-operative Bank is a sign of what we can expect more of as 2024 progresses: market consolidation in the UK financial sector.

“After a very chilly 2023, when investors held onto their cash, 2024 is warm and getting warmer for market consolidation.

“The mood was set in March with Nationwide’s acquisition of Virgin Money for a not immodest £2.9 billion. I think we will see more of businesses making bold moves and joining forces as the year progresses.

“With strengthening market sentiment, now is the time investors have been waiting for.

“In January there was a record £2.4 trillion in global cash reserves – most of which is probably still sitting there, waiting for the right buyout or other investment such as in the securitisation of lenders’ back books ahead of the July 2024 Consumer Duty deadline.

“Watch this space. Market consolidation is set to springboard.”