By Jo Thornhill
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Nationwide Building Society, Britain’s biggest mutual lender, is closing 23 branches in one of its most savage culls in years.
Nine branches will go in several counties. The mutual is also axeing ten branches of Derbyshire Building Society, which it acquired in 2008, a third of the network; three Cheshire Building Society branches, which it also took over in 2008; and one branch of Dunfermline Building Society, which it rescued from collapse in March 2009.
Letters are being sent to customers and posters will appear in the branches next week. For a full list, go to thisismoney.co.uk/branches.
Axe: Nationwide says the latest closures are due to a number of factors, including the streamlining of branches
The closures, which will be completed by the end of August, follow those of 13 Nationwide branches last year, predominantly in deprived areas of south-east London.
In 2010 the mutual, under chief executive Graham Beale, also pulled the plug on its entire network of agencies â€" where a counter for the building society operates within another business such as a solicitor or estate agent â€" claiming they were unprofitable.
Nationwide says the latest closures are due to a number of factors such as the streamlining of branches, where for example a Cheshire or Derbyshire branch is close to a Nationwide branch.
Levels of customer use and profitability also play a part. Nationwide has a branch network of 700 and there are 108 branches under the brands Cheshire, Derbyshire or Dunfermline.
Nationwide says: ‘Where Cheshire and Derbyshire closures are happening, there is another Nationwide branch nearby.
‘The average distance to the next nearest branch is two and a half miles. We constantly review our network and the viability of staying open in a particular location or property.’
But Derek French, who runs the Campaign for Community Banking, an organisation that monitors closures and lobbies for branch sharing by banks, says the loss of 23 branches is a ‘devastating’ blow and will damage communities.
He says: ‘Increasingly, financial institutions are being “accountancy- driven†and are under cost constraints. But when the decision is made to close a branch it has wide-reaching implications.
‘As Nationwide did not change the brands of Cheshire, Derbyshire or Dunfermline when it took them over, many customers will have been unaware of the changes. Now their branch will be going and they won’t really understand why.’
Nationwide has 15million members and more than £200 billion of savings on deposit. Pre-tax profits for the financial year 2011-12 were £304million compared with £276million for the previous year.
Yorkshire opens more branches and says they are its ‘heart’
In stark contrast to Nationwide’s axe-wielding, Yorkshire Building Society has opened three branches, in Bingley, Ilkley and Pudsey, all in West Yorkshire.
They take the Society’s branch network to 227 and are part of plans to open 12 new branches over the next two years. Sixteen agencies have opened in the past year.
Presence: The new branch at Pudsey in West Yorkshire is opened
Chief executive Chris Pilling says: ‘Yorkshire is one of the few institutions that has grown its presence on the High Street at a time when many have been closing branches.
‘We are committed to retaining a strong presence on our High Streets and in the local community surrounding our branches. As a mutual our branch network will always be at the heart of our business.’
That network has grown substantially in recent years after it stepped in to save other struggling or failing societies â€" Barnsley, Chelsea and Norwich and Peterborough â€" and acquired their branches.
The Society has not closed a branch in three years and has committed to retaining NP branches for at least two years.
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Not Surprised. Nationwide Building Society try to be like a Bank but are very slow Inefficient. Like the 1 at Grantham Lincs that has 3 tills with only 2 people working with long-queues ( You wait You Wait You Wait while the Women Talk they Talk they Talk about allsorts of things). The Nat-West is the Best then the Halifax.
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Nationwide's move to close branches doesn't surprise me as despite being a mutual it is run just like a bank. I'm with both Nationwide and Yorkshire and the Yorkshire is a real mutual run for its members benefit, Nationwide sadly is not. I've found Nationwide has a lack of interest in complaints and shoddy customer service. I recently contacted Yorkshire about problems I was having logging in to my internet account and they were on to it straight away: I was surprised by just how seriously they took the matter! Sadly Nationwide has become too big and is now just like bank although they like to boast about being a mutual. If I need any financial products in future it will be the Yorkshire I look to as i feel they are honest and are looking out for my interests.
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