Nationwide Building Society has issued a comprehensive update regarding significant changes to its customer services and product offerings, following its landmark acquisition of Virgin Money. The mutual, which stands as the UK's largest building society with over 16 million members, has detailed how the merger has enhanced its financial stability and expanded its scope to benefit both personal and business customers.
Parliamentary Recognition and Merger Benefits
The organisation's recent activities were highlighted in Parliament, where banking executives discussed the broader building society sector. Sarah Harrison, chief executive of the Building Societies Association, informed the Treasury Committee that mergers within the sector were viewed as "very positive", specifically citing Nationwide as a prime example. Nationwide finalised its takeover of Virgin Money in October 2024, with millions of customers receiving a £50 bonus as a gesture of appreciation after the successful completion of the deal.
Enhanced Product Range and Financial Strength
Nearly eighteen months after the transaction, Nationwide was asked how services for customers have been improved given its expanded capabilities. A spokesperson explained: "Having a broader product range, including a wider credit card offering, and retaining Virgin Money's profits within the Nationwide Group increases our financial strength and stability." They emphasised that these profits can be reinvested into better products and services, enabling the society to deliver greater value back to customers through more competitive rates than the market average.
The mutual also revealed that the merger provided a substantial financial uplift. The spokesperson stated: "We recorded a £2.3 billion gain on completion of the acquisition which will help cover integration costs, invest in customer service and deliver more value across the Group." Furthermore, they highlighted that following the acquisition, Nationwide became the first large-scale mutual to offer business banking, and as its strategy continues to evolve, it aims to extend the benefits of its mutual model to businesses throughout the United Kingdom.
Commitment to High Street Branches
Nationwide also addressed recent announcements concerning the future of its high street branches. The spokesperson confirmed: "We recently extended our Branch Promise to 2030, which includes all Nationwide and Virgin Money branches as we continue to provide choice in how our customers bank with us." This pledge ensures that Nationwide will maintain all 605 of its existing Nationwide branches alongside its 95 Virgin Money branches until at least the year 2030. According to the building society, this includes 133 locations where Nationwide remains the sole high street banking provider, underscoring its commitment to local communities.
Member Profit Payments and Future Prospects
Members have also benefited from bonus payments in recent years through the Fairer Share Payment scheme, which involves Nationwide distributing its profits among its members. Over the past three years, there have been three rounds of payments, with £100 paid out on each occasion. When questioned about the possibility of another payment this year, the spokesperson responded: "Nationwide's board will decide on a Fairer Share Payment for 2026 and it will depend on our financial performance." That assessment will be made after the financial year end, with the eligibility criteria for this year being agreed at that time. The decision will be announced as part of the full year results in May, keeping members informed about potential benefits.
This update from Nationwide highlights the ongoing evolution of the building society sector, with a focus on mutual benefits, expanded services, and sustained high street presence, all aimed at enhancing customer value and financial stability in a competitive market.
