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Article Date:	11/08/2006
Article Title:	Cahoot
Cahoot has pulled the plug on its planned launch into the intermediary market following an unsuccessful test with a large IFA. The Banco Santander sub-brand planned to enter the intermediary market in the third quarter with an unsecured loan offering, but trials in the first half of the year showed a lack of appetite from introducers. Joe Wiggins, spokesman for Cahoot, said management decided to concentrate on bringing in business that would have an immediate positive impact on the balance sheet. He explained: “The whole point of the pilot was to discover whether there was sufficient demand and it would seem there was not really the demand for that type of product in the broker market. “The bank now wants to focus on savings. Cahoot already has a flexible loan available directly and that has been doing really well so far and so it is now going to be looking to at balancing the portfolio and getting more savings business through.” However brokers and IFAs claim that Cahoot is using broker appetite as an excuse not to enter the market. Anna Bowes, spokesperson for Bath-based IFA, AWD Moneyextra, said there is room for more market entrants, but lenders must get their marketing plans right. She said: “If Cahoot was to come out with a competitive product, I can’t see any reason why it wouldn’t be used. There is no reason why we wouldn’t use it unless they had terrible administration.”