Christopher Spink (TMFEagle) and Nigel Roberts (TMFNigel) take opposite views on the future of Egg(LSE: EGG). Will its high lending rates and low borrowing rates eventually starve it of cash, or will its relationship with its customers and an ability to cross-sell make it a success?
Read the arguments below, and then let us know what you think using the Poll feature on our discussion boards. At 'em, Fools!
The Bear Argument...
OK, first let me confess, I am an Egg customer, I have all of my cash savings invested in an egg savings account. Why? Because they offer me instant access and a market-beating interest rate. As a customer I like Egg. Second, let me confess again, as a customer I was therefore eligible to apply for shares at the time of the flotation, I did not. Why not? Coz I am an EGG BEAR! more
The Bull Argument...
Before discussing Egg, cast your mind back twenty years. Think about the relationship you had with your bank. Most charged customers fees for looking after their money. If you wanted to withdraw cash you had to queue up in a branch. These were only open between 9:30am and 3:30pm on weekdays. Unbelievable! But British people uncomplainingly put up with this shoddy service for decades. Statistics suggest that people change their spouses more frequently than their bank accounts. more
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