What does the announcement mean and what is the background to it?
In its financial results issued in May 2012 and in the 2012 AGM packs Nationwide announced plans to integrate the Cheshire, Derbyshire and Dunfermline, known as our ‘Regional Brands’ into the ‘Nationwide’ brand. With our major transformation programmes at Nationwide now complete, the time is right to progress our plans, with an aim to complete by mid 2015.
Despite their stability and continued presence on the high street in recent years, the Cheshire, Derbyshire and Dunfermline have only been able to offer a restricted product range and limited ways for members to manage their money.
Integrating these businesses fully into Nationwide will give all our 15 million customers and members access to our full suite of products, channels and market leading customer service.
When will the integration of each brand take place?
The integration of Dunfermline will take place in Summer 2014, Cheshire in Autumn 2014 and Derbyshire in Winter 2014. By mid 2015 the integration of the Regional Brands into the main Nationwide business will be complete.
Why are you planning to close some of the branches?
Closing branches is never an easy decision. As our Regional Brands network of branches will be brought under the Nationwide brand, we need to review and make decisions about the shape and size of our presence in every affected location to ensure we are represented in the right locations to meet our customers’ and members’ needs. That review is now complete.
We also have a collective responsibility to our entire membership to run the business as efficiently as possible.
What’s happening to customers’ accounts? And when?
Members do not need to do anything now. The integration will be done in three phases starting with Dunfermline, then Cheshire and finishing with Derbyshire. Our aim is to complete the integration by mid 2015. We will write to all members with product holdings ahead of the integration so they know what will happen to their accounts.
Will the protection that my savings have under the Financial Services Compensation Scheme (FSCS) be affected by this announcement?
The FSCS position will not change as a result of the integration. The FSCS limit of £85,000 per individual (or £170,000 for joint account holders) applies to the combined amount in all the eligible depositor’s accounts across any one or more of the Nationwide Group trading names. Nationwide Building Society operates under the trading names of: Cheshire Building Society, Derbyshire Building Society and Dunfermline Building Society. More details are available here.
When will regional brand customers be able to use Nationwide branches to carry out transactions on their accounts? How will they know which branches they can use and when they can use them?
We expect that Dunfermline customers will be able to use Nationwide branches from Summer 2014, Cheshire customers from Autumn 2014 and Derbyshire customers from Winter 2014. We will be writing to all these customers, advising them of the details of their local branches at least 12 weeks before any change takes place.