Richard Branson visits the Virgin Money Lounge in Norwich. Picture: Denise Bradley

Sir Richard Branson wants to revolutionise banking with the company which started life in Norwich. Annabelle Dickson met the man behind the brand when he visited the city yesterday.

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With his shock of blond hair, precariously balanced on one of the plush modern chairs in the new swanky Virgin Money Lounge, Sir Richard Branson has a room of grinning Virgin Money staff, customers and the great and the good in fits of giggles as he tells an anecdote of a visit to his aunt in Ingworth, near Aylsham, to record a number five chart hit with a sheep and duck.

When it comes to quirky marketing and communication there is no one that does it quite like Sir Richard.

Virgin Money has been in existence since 1994 – starting life after a deal was struck with Norwich Union to create Virgin Direct. From there it grew into a business now employing 250 people in Norwich, and more in offices in Edinburgh and London.

“Seventeen years ago we started here with seven people,” Sir Richard said. “Jane Anne [Gadhia – now chief executive] was one of those seven and we went to the office and we really were scraping the pennies together. We had five computers and seven people and one bottle of champagne. When I popped it it wrecked three of the computers so the business nearly didn’t get off the ground,” he joked.

“We have 250 people working here now and it’s great visiting the offices again and a fantastic group of people,” he said. “A lot of people who were there at the beginning are very much still there which is obviously one of the great things about being based here. People are incredibly loyal and stick with companies for a long time.”

The £747m takeover of Northern Rock has given Virgin a banking licence and propelled it back into the headlines and into a new league. And, given his love of aeroplanes, many have wondered if the price struck was another sign of Sir Richard’s sense of humour.

Becoming a high street bank is a whole different ball game and Sir Richard is determined to make it a different experience. One way has been the opening of stylish ‘lounges’ for customers, like the forerunner he visited in Norwich.

Even the local police are enjoying a morning coffee in the new facility, according to Virgin Money chief executive Jane Anne Gadhia who told the assembled guests that it was the “safest” bank around.

Sir Richard said that the Northern Rock deal has been something the company had wanted to do for a long time. And it had been desperate to go from being a pure financial services company with three million customers to becoming a bank.

He said Virgin Money had wanted to get a banking licence and compete with the big banks for a number of years.

“Four years ago we came close but we didn’t succeed. We don’t like to give up at Virgin and we came back again and were successful this time.”

But with all the rhetoric, what about the substance?

The first of the banking products is the new deposit account which Sir Richard vows will be “free”. But he admits himself this is clearly in quotation marks.

“What we are actually doing as far as the current accounts are concerned is that we will offer a completely free current account like the other banks, but that word ‘free’ is highly misleading because those other banks have hidden charges that go with their current account,” said Sir Richard. “We will still offer that account but we will also have current accounts where people can have a small charge and we will get rid of all the hidden charges so it is completely transparent. So we will give people a choice.

“I think that’s what has been lacking in the past. People had current accounts which they think are free but then they suddenly cost them hundreds of pounds.”

Although not at that stage yet, he is also keen to provide student loans and much-needed help to small businesses.

“We will start lending it out and help get the British economy back on its feet again. This is part of that,” he said.

“It’s new businesses that employ new people and get people off the dole so as many new businesses as possible should be encouraged to start and then it’s up to companies like Virgin to get out and invest in new businesses competing in the high street we will be able to help new businesses get started and be able to help people get their first homes and bring in products that save people money and enable people to develop in their lives. The competition in any industry is important, but particularly in the banking industry it is important.”

He added: “Hopefully in a year to 18 months we will start being able to make small business loans and student loans. The initial thing is the deposit account that we’ve just launched which is a very good-value deposit account but in a year’s time we are going to be able to start making loans and hopefully we will be able to start helping small businesses in the region.”

Now a banker, he is scathing about some colleagues in the sector and its past.

“I think the banking industry has discredited themselves and almost brought to the world to its knees by being very very greedy,” he said. “We need a new ethos in banking and I hope Virgin Money will run its company in a very ethical way where the public can be proud of it and we can hold our heads high and reward people if they really deliver and if they don’t deliver they won’t be rewarded,” he said.

“We felt that a brand that had a good reputation and offered great products and did things with a bit more style and panache we would bring a great competitor to the banking industry. Virgin Money and the Virgin brand is one of the most respected brands in the UK. We’ve had 17 years of experience in financial services so to get on the high street and offer a bank is something we think we can do well.”

But while he showed commitment to Norwich, he did not go as far as to pledge allegiance to the football team –instead nailing his colours to Newcastle United, where the new bank’s headquarters will be based.

“Since Norwich beat Newcastle recently maybe we should have looked at Norwich. The reason we did Newcastle was Northern Rock was already sponsoring Newcastle so we effectively replaced the Northern Rock T-shirt with Virgin T-shirts and got very lucky. They beat Manchester United 3-0 on their first match.”

And on the issue of a future stake in the team he was doubtful.

“I think most likely not at the moment, but you never know in the future.”

To see Sir Richard Branson delivering his Ingworth anecdote during his visit log on to www.edp24.co.uk/business