Co-op to pull together in shake-up

THE Co-operative Group is breaking with more than 100 years of tradition by recruiting a single chief executive to run both its banking and insurance arms.

The move is part of a shake-up of the Co-op's financial service activities with the separate banking and insurance divisions being brought together under one board.

Sir Graham Melmoth, Co-op Group chief executive, said: 'Our two operations have enormous but different strengths and should be pulling together to increase our share of the financial services market. Common leadership will help us achieve that goal.' Melmoth said cross-selling - the holy grail of the banking world - was 'minimal' at present within Co-operative societies. Few bank customers, for example, are given information about the insurance arm's products or vice versa.

Co-op's businesses cover the whole financial spectrum - from internet banking for affluent consumers under the smile.co.uk brand, to low-value door-todoor collection policies from the Co-operative Insurance Society. Melmoth, 63, who is due to retire this year, said internal and external candidates would be considered for the new role.