Bad timing: Norwich & Peterborough are now with HSBC — ethical banking?

A question about : Bad timing: Norwich & Peterborough are now with HSBC — ethical banking?

I was calling N&P about a separate issue, and they just informed me that they're switching from using the Cooperative Bank's systems to those of HSBC.

It couldn't be a worse time, given that HSBC have been in the news for UK tax avoidance.

Perhaps the ethical score on MSE for N&P should be re-considered because they are now lining HSBC's pockets more.

I really liked them as a bank, especially with their free foreign spending cards.

What do you folks think about the significance of this change?

P.S. I was enquiring with them to find out whether or not they'll be offering Apple Pay to their current account customers. They commented that it is dependent on when HSBC roll it out since they provide them with card technology.

Best answers:

• So, as I understand, your argument is, "everybody's doing it"?
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• What exactly do you mean by "HSBC's systems"? If it is just that they are using HSBC's sort code ranges (e.g. account sort codes start 40) then they are not actually part of HSBC as such, and don't actually use HSBC's banking systems; they just use HSBC to clear their cheques.
• The trouble with smaller providers is that they simply can't operate everything themselves. I got to know the finance guys of a pretty major charity a while back, and as they sent a lot of people abroad for long stints I asked why they used Barclays, because the cost of using Barclays debit cards abroad is quite high.
  The charity would have loved to switch away from Barclays (this was at the time of the Bob Diamond headlines - so as for "they're all as bad as each other" that's pretty accurate!), but they couldn't find a smaller, more ethical provider that would cope with the charities main business needs.
• It should be an improvement, N&P's online banking has never been the slickest around.
• Their internet banking is the same as before, they've pretty much just changed the logos to be a wine coloured version of Yorkshire Building Society's logo.
  As for them using HSBC clearing systems, AFAIK it's simply to improve their Faster Payment infrastructure as they can now be received 7 days including bank holidays.
  Tesco Bank or Coventry Building Society also both use HSBC for clearing.
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