Five questions put to Nationwide bosses by its members at its online-only AGM
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- Nationwide held its AGM online today
- Members wanted to know about the Virgin Money takeover and Fairer Share
Nationwide Building Society's annual general meeting today saw chief executive Debbie Crosbie and 10 Society directors up for re-election.
It held its AGM online - members did not have the option to attend in person.
Britain's biggest mutual said holding the AGM online allowed ten times more members to attend than if the AGM were held in person.
The Virgin Money takeover, Nationwide's branch promise which is in place until 2028, the Fairer Share payment and savings products were at the forefront of members questions to the board.
This is Money reveals five of Nationwide members' most pressing questions.
1. Why are you modernising passbooks and has there been pressure from members to do so?
Last week, This is Money revealed that Nationwide is scraping passbooks from February 2025 and replacing them with a 'modernised' savings wallet.
A member of Nationwide branch staff told us of their concerns that there would be 'mountains of complaints' if Nationwide scrapped passbooks.
Nationwide said 2 per cent of its 16million customer base currently use passbooks.
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Debbie Crosbie, chief executive of Nationwide Building Society, said: 'We know how important passbooks are to our members which is why we are modernising them and not withdrawing them.
'The technology which the printers run on is very old and often breaks down, it is actually one of the main reasons why why get queues building up in branches.
'So technological advancements have really driven the need to modernise the passbooks.'
'We hope that the new savings wallets will improve members' experience in the branch.'
2. I've been a member for almost 40 years but still have not received the loyalty bonus. What does the society consider loyalty?
But not every Nationwide member was eligible to receive the payment, with only around 20 per cent of Nationwide members receiving it.
On a basic level, to receive the £100 payment, members needed to hold a Nationwide current account, as well as one of the following:
- At least £100 in a Nationwide savings account or Isa
- At least £100 left on a Nationwide mortgage as of 31 March 2024
Crosbie said: 'The Fairer Share payment is designed to recognise customers who have their main banking services with us. We think this is the best way to build a long-term relationship with our members.
'We absolutely are grateful for the loyalty, which is why we are offering our member exclusive bond to reward your loyalty.
'A really important part of our Fairer Share package was our member exclusive bond, paying 5.5 per cent interest over 18 months.
'The interest from this - amounting to £198 - outweighs the £100 Fairer Share payment.
'In addition to this we have also offered a £200 switching bonus to our members who are savers-only to open a current account.'
Kevin Parry, chairman of Nationwide added: 'The importance of current accounts to Nationwide cannot be understated. Running current accounts is an expensive business however.'
Nationwide confirmed that Virgin Money customers will not be eligible to receive any Fairer Share payment next year if the takeover goes ahead.
Crosbie said: 'Virgin Money customers will not automatically become members of Nationwide. The Fairer Share payment is only for Nationwide members.
'Our intention is to offer the Fairer Share again next year as long as it makes sense financially.'
3. How will the Virgin Money takeover work with the branch promise - where a Nationwide and Virgin Money branch are in close proximity will one or other close?
Nationwide has a branch promise in place until 2028, meaning that anywhere it has a branch it will stay open until at least 2028.
The mutual, which is in the process of acquiring Virgin Money, received questions from members about what this would mean for Virgin Money branches as well as Nationwide branches.
Crosbie said: 'We have extended our branch promise not just to Nationwide branches but also to Virgin Money branches, even if they are alongside each other.
'The Virgin Money branches will retain Virgin Money branding for the coming years. We will revisit the branch promise post 2028.'
Chris Rhodes, chief finance officer said: 'Our plan is to rebrand Virgin Money branches within four to six years so I don't think we will be rebranding any Virgin Money branches before that. They will remain separate for a period of time.'
Nationwide also confirmed that it has no plans to open new Nationwide branches at the moment.
4. Nationwide has the contact details of all savers. Why make them sign up to 'savings watch' when you can tell them about deals yourselves?
Nationwide launched its savings watch a few years ago. It is an email which tells members about savings rates movements to keep them informed of any changes. Savers need to opt in to receive the email communication.
Under the FCA Consumer Duty, banks were told to do more to pass interest rates on to savers and to make it easier for savers to find better savings deals.
Crosbie said: 'Our savings watch email is not categorised as a service message, it is considered marketing material by the regulator.
'We are not able to send information on new products under the current regulation which is why savers have to sign up and opt in to receive the communication. Unfortunately regulation deems it to be marketing.'
5. Is Nationwide going to have to make a 'golden handshake' payment to Virgin Money shareholders?
In March, Nationwide offered to buy Virgin Money for £2.9billion. At the time, the offer price was a 38 per cent premium to Virgin Money's closing share price on 6 March 2024.
Rhodes said: 'We are paying £2.9billion to the shareholders of Virgin Money to acquire Virgin Money.
'The price we are paying is at a premium to what its shares were trading at. So yes there was a premium but we are buying Virgin Money at a discount to its book value.
'We believe that the acquisition will benefit the members by a 17 per cent return of initial investment.'
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