besides the lower prices due to operational efficiency that you mention, it's probably about having a different marketing mix (the 4 Ps--product, price, placeme

besides the lower prices due to operational efficiency that you mention, it's probably about having a different marketing mix (the 4 Ps--product, price, placement and promotion) to attract a different cusotmer segment. many of their customers probably don't even know or care that the sub-brand is owned by a high street bank. the sub-brand might also be part of a strategy to funnel younger, new customers into the fold. i'd say the main reason the main banks don't have good customer service is that they simply don't have to, and the actors therein have selfish aims. the fiefdoms of the large organization will typically divert resources to themselves (increase revenue, decrease operational expenses, and increase managerial compensation/headcount). consumer inertia allows this to happen (which is why i advocate moving away from big banks to promote competition and better service).