Consumers increasingly state that they’re looking for more ethical ways of doing business, and the Co-Op certainly has that in spades – but is this enough in the banking sector, where the bottom line for the customer is genuinely that; their bottom line?  Banking customers are notoriously reluctant to switch provider – possibly a by-product of the belief that all banks are the same – so they really do need to be wooed away by more than the woolly feeling that their bank is “better” – no matter how true that actually is.

Thanks to its mutual ownership structure, the Co-operative Bank is a little closer to the traditional building society ideal ( indeed, following the acquisition of Britannia, it does actually own a building society), and certainly plays against the UK banking stereotype.  Its HQ is in Manchester, not London, and it doesn’t make headlines on the news pages as frequently as it does on the finance pages  – which is certainly a differentiator!

If the deal comes off, then that will give the Co-Op a boost in market share from 2.3% to more than 6%, much closer to the threshold at which it can become generally disruptive to the UK retail bank landscape.  If it can then ally some genuinely differentiating products and customer service to its already acknowledged reputation for probity and rectitude, then it could become a real mainstream alternative to the big names on the High Street.

It’s a long copy ad, in which the third paragraph reads: “You’ve read this far.You’re in a minority. Only 17% of people ever read adverts past the headline. Assuming, of course, this is an advert. There’s no logo, no obvious contact details and no product.”

All becomes clear by the end, if you’re willing to read that far – but like the best film reviews, I won’t reveal the twist but instead give you the ending:

“You may even be consdering applying. You may feel like talking to friends and family about this. That’s completely natural and will end your application process before it’s even started. So if you want to discuss anything, discuss it with us and no-one else.”

I’m clearly not applying.

And the new Virgin Money (after the acquisition of Northern Rock) is the non-screw version of banking. The ads promise a ‘better kind of bank’. Ok, it’s a ‘huge ambition’ and one which will ‘take time to achieve’ … but the principles are hard to question. Genuinely caring about you and your money, putting customer service ahead of cost-cutting, an end to ‘sting in the tail’ products, no excessive products and using ‘our expertise with money to do some good in the world’. Who could say no?

Branson has always positioned himself against the incumbents. Virgin Atlantic, his original Virgin Money offset account, even Virgin Trains were all ‘new’ players taking on what (in the context of financial services) Branson defined as the ‘FOG’ – the Financial Old Guard.

It’s just a shame that he seems to have borrowed someone else’s positioning. For Virgin Atlantic it was SouthWest Airlines; for Virgin Money’s new proposition it’s yet another American operation. Ally Bank in fact. OK, this is the ex GMAC operation that used to be General Motors’ vehicle for auto financing. Now – since May 2009 – it’s ‘new kind of bank’ that talks about being a ‘better kind of bank’.

Ally Bank’s website (http://www.ally.com/about) showcases three simple principles: talk straight, do right, be obviously better. Like Northern Rock, GMAC needed to be reinvented after rescue by the US Treasury.

Ally have just launched their new ‘love your bank’ commercials starring Rufus the Dalmatian (is it a coincidence that Cerberus Asset Management have a stake?). If Virgin Money starts on a love campaign or showcases four-legged friends then beware…

But, whatever else can be said about Branson, he’s always on trend. Always capable of cashing in on what’s going to be the future of financial services – the reinvention of trust. You know what? I hope he does set the agenda.