Why banks once flocked to Canary Wharf’s high-tech superstructures, but are now starting to return to the City
This could signal the reverse of the 1990s trend of banks moving out of the City in search of buildings more suited to modern banking.
- This could signal the reverse of the 1990s trend of banks moving out of the City in search of buildings more suited to modern banking.
- The City’s “Square Mile” financial district is considered the historical centre of British banking.
- But space and planning restrictions on building expansions made a move to Canary Wharf very appealing as banks navigated the new world of electronic trading, starting in the 1980s.
- Barclays was the last major UK retail bank to leave the City’s Lombard Street for Canary Wharf in 2005.
Fighting to modernise
- Victorian banks preferred large, grand, highly-decorated buildings in prime locations for their head offices.
- However, by the 1960s, the Victorian style of Gibson Hall appeared old-fashioned, while the building itself had become ill-suited to modern banking methods.
- By 1964, this figure had grown to 1,866, excluding non-clerical staff, according to information we found in the NatWest Group archives.
- A preservation order placed on Gibson Hall in 1964 blocked National Provincial from demolishing its Victorian home to replace it with a modern tower block.
Out with the old
- The preservation order placed on Gibson Hall gave a clear signal that such buildings should stand.
- But City firms’ need to expand and update their office space took on a new urgency following financial deregulation, known as the “Big Bang”, in 1986.
- As well as replacing face-to-face share dealing with electronic trading, the reforms allowed more banks to start trading, not just advise investors.
- But it eventually gave UK banks what they had wanted for so long: a free hand to build huge skyscrapers.