How Nationwide is successful the excessive road banks battle

Excessive road banks and constructing societies have been battling IT out with challenger banks equivalent to Monzo and Starling, however Nationwide is preventing again by leveraging conventional roots with extra presence on the excessive road as IT pledges to open extra branches with buyer dealing with providers.

Plus, its engaging Fairer Share scheme, which has persistently paid a £100 bonus to loyal prospects for 4 years and shares income with members, is common.

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You’ve greater than probably seen the Nationwide adverts of Dominic West enjoying the pompous and out-of-touch chief govt of A.N.Y. Financial institution.

But behind the light-hearted campaign, Nationwide is winning the hearts of current account holders, bagging 65,000 new customers in the first quarter of this year, according to the latest available figures from the Current Account Switch Service.

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In comparison, Barclays, which plans to close 166 branches in 2026 and 2027, bagged 18,500 new customers. Lloyds netted just 12,000 new customers; IT has closed 397 branches since March 2022.

At its annual common assembly earlier this month, Dame Debbie Crosbie, chief govt officer of Nationwide, mentioned the constructing society was “pondering fastidiously about whether or not there are any spots the place IT would make sense for us to open new branches”.

“I can say that IT‘s at present underneath evaluation, and there could also be a number of areas that we establish the necessity for a brand new department,” she mentioned.

Tom Riley, group director of retail merchandise at Nationwide added that prospects have been deciding to change as a result of “they will see the distinction a large-scale mutual is making”.

Nationwide’s £175 switching sweetener, paid to eligible new prospects after they transfer present accounts, has additionally helped the financial institution achieve new prospects.

Nationwide’s pledge to maintain financial institution branches open

Banks have justified closures saying prospects are more and more finishing up transactions on-line, however charities have warned they danger leaving the aged and people dwelling in rural communities at risk of monetary exclusion.

Nationwide is bucking this pattern and thru its “Department Promise” has pledged to not shut any extra branches till 2030 on the earliest.

The constructing society had initially dedicated to protecting its almost 700 branches open till 2028, however prolonged the pledge in November 2025.

Martyn James, private Finance and shopper rights knowledgeable, mentioned Nationwide’s dedication to the excessive road was an “astute transfer”.

He mentioned: “Huge numbers of individuals want an precise department to enter, together with the thousands and thousands of carers for susceptible individuals, small companies that take money, individuals with particular wants or vulnerabilities and individuals who simply don’t love on-line providers.”

How different constructing societies and banks are pledging to maintain branches open

Different constructing societies are additionally following Nationwide’s ambitions.

Newcastle Constructing Society is rising its department community, opening a brand new web site in Guisborough, North Yorkshire, in April.

The constructing society says IT has invested greater than £12 million to develop and enhance its community of branches since 2015.

In July, Cumberland Constructing Society pledged to maintain all its 31 branches open as IT appears to be like to forestall the decline within the excessive road.

Andrew Gall, head of financial savings, shopper and perception on the Constructing Society Affiliation, mentioned: “Constructing society branches proceed to play an necessary position as a result of they provide one thing many purchasers nonetheless worth: trusted, face-to-face assist alongside digital and phone providers.”

In current months, main banks have additionally made pledges to maintain financial institution branches open and put money into their present department networks, recognising that prospects presumably worth IT greater than beforehand thought.

In July, Santander, Finance/santander-tsb-takeover” data-url=”https://moneyweek.com/personal-Finance/santander-tsb-takeover” data-hl-processed=”none” data-mrf-recirculation=”inline-link” data-before-rewrite-localise=”https://moneyweek.com/personal-Finance/santander-tsb-takeover”>which owns TSB, introduced IT wouldn’t shut any extra of its 480 branches earlier than 2028 on the earliest.

In December 2025, HSBC promised to maintain all its remaining websites open till at the very least 2027.

Fairer Share fee

Nationwide paid over 4 million prospects a Finance/financial savings/nationwide-fairer-share-eligibility” data-url=”https://moneyweek.com/personal-Finance/financial savings/nationwide-fairer-share-eligibility” data-hl-processed=”none” data-mrf-recirculation=”inline-link” data-before-rewrite-localise=”https://moneyweek.com/personal-Finance/financial savings/nationwide-fairer-share-eligibility”>£100 “Fairer Share” fee in June this yr – the fourth consecutive yr IT had made the fee since 2023.

When the constructing society launched IT for the primary time 4 years in the past, Crosbie mentioned IT was “a part of our enduring dedication to rewarding our members”.

Vicky Reynal, monetary psychotherapist and up to date visitor on the MoneyWeek Talks Podcast, mentioned the enchantment behind the Fairer Share fee was the shock factor, but additionally that IT makes prospects really feel like they’re a part of one thing larger in an “more and more lonely and disconnected world”.

Reynal mentioned: “The monetary providers business has typically suffered a notion from prospects that their pursuits are with shareholders quite than account holders, so this handout feels to prospects like a distinct positioning, like a financial institution that cares about its account holders.”