First Direct
| Company type | Division |
|---|---|
| Industry | Banking, Financial services |
| Predecessor | Midland Bank |
| Founded | October 1, 1989 |
| Headquarters | Leeds , England, United Kingdom |
Area served | United Kingdom |
| Products | Telephone and internet-based banking, Offset Mortgage, SMS banking, Internet Banking Plus, mobile banking app |
| Owner | HSBC UK Bank plc |
| Parent | HSBC UK Bank plc |
First Direct (branded as first direct) operates as a telephone and internet-based direct retail bank and functions as a division of HSBC UK Bank plc, with its headquarters located in Leeds, England. Serving a customer base of approximately 1.9 million, it was recognized as the Most Trusted Financial Provider by Moneywise in 2019. Additionally, it achieved the highest ranking for overall service quality in the Competition and Markets Authority’s biannual survey conducted in February 2020.
History
First Direct commenced operations on 1 October 1989, initially launched by Midland Bank, one of the United Kingdom’s major banks at that time. Following HSBC’s acquisition of Midland Bank in June 1992, First Direct became part of the HSBC group. Within its inaugural 24 hours, the bank handled over 1,000 customer calls.
The launch campaign utilized innovative advertising on ITV and Channel 4, highlighting the contrast between conventional banking methods and First Direct’s direct banking approach.
Customer numbers reached 100,000 by May 1991, expanded to 250,000 by March 1993, and the bank achieved break-even status in December 1994. By April 1995, its clientele had grown to 500,000.
In May 1999, First Direct was among the pioneers in introducing SMS alerts for low account balances and mini statements. The bank began internet banking trials in July 1997 and officially launched full internet banking services in August 2000.
Product offerings were broadened with the introduction of an Offset Mortgage in July 2001. In January 2004, First Direct unveiled First Directory, a bundled service package including complimentary SMS banking and insurance for a fixed monthly rate. Subsequently, Internet Banking Plus was launched in April 2004, enabling customers to view accounts from multiple banks within a single online interface.
October 2006 marked the debut of an early mobile banking service through Monilink. February 2007 saw First Direct become the first UK bank to implement charges for current accounts, indicating a shift away from previously widespread fee-free banking models.
In May 2013, First Direct acquired naming rights for the new Leeds Arena until 2018; this sponsorship agreement was extended by an additional five years in March 2017.
September 2016 introduced voice identification technology for customer authentication at First Direct, making it the first UK bank to deploy this technology on a large scale. A new dedicated mobile application for both Apple and Android platforms followed in 2017.
As part of HSBC’s ring-fencing reorganization, First Direct transitioned from HSBC Bank plc to HSBC UK Bank plc in July 2018.