Nationwide take over of Virgin Money

WillPS

pafpcg said:

WillPS said:

Weakest_Link said:

Virgin Money shareholders will be introduced to the dodgy, undemocratic and biased voting system used by the directors of this "modern mutual" (their term for bank).  The purpose of building societies was and still is the provision of mortgages but Nationwide directors say its purpose is "Banking".

There's no stipulation preventing Nationwide or any other building society from offering whichever products they wish. They're not alone in having expanded their offer, although they are the only remaining player in the nationally-available current account market and I believe the only one to ever offer a credit card.

I recall the credit card offered by Leeds Building Society (aka Leeds & Holbeck BS) something like 20 years ago. But that may have been just a branding operation - it was dropped by Leeds BS within a couple of years and the accounts are now branded MBNA.  (I've still got it!)

Would the Co-op qualify? - it was still a mutual when I opened my Co-op Members credit card account.

Interesting, I didn't know that. I suspect it was a branded MBNA card rather than their own thing - that was MBNA's bread and butter back then, pick a partner - charity, football club, airline, shopping centre... anything and launch a co-branded credit card. I understand Nationwide outsource a lot of the back office for their credit card (not sure who to) but the consumer's agreement is with Nationwide.

The Co-op Group was and remains a consumer co-operative but the bank has always been a bank and not a building society (as Clydedale Bank will be for a time at least post-acquisition, if it goes ahead). 

EDIT: - turns out Leeds BS still offer their MBNA introduction: https://online.leedsbuildingsociety.co.uk/other-products/credit-card/

Rich1976

WillPS said:

pafpcg said:

WillPS said:

Weakest_Link said:

Virgin Money shareholders will be introduced to the dodgy, undemocratic and biased voting system used by the directors of this "modern mutual" (their term for bank).  The purpose of building societies was and still is the provision of mortgages but Nationwide directors say its purpose is "Banking".

There's no stipulation preventing Nationwide or any other building society from offering whichever products they wish. They're not alone in having expanded their offer, although they are the only remaining player in the nationally-available current account market and I believe the only one to ever offer a credit card.

I recall the credit card offered by Leeds Building Society (aka Leeds & Holbeck BS) something like 20 years ago. But that may have been just a branding operation - it was dropped by Leeds BS within a couple of years and the accounts are now branded MBNA.  (I've still got it!)

Would the Co-op qualify? - it was still a mutual when I opened my Co-op Members credit card account.

Interesting, I didn't know that. I suspect it was a branded MBNA card rather than their own thing - that was MBNA's bread and butter back then, pick a partner - charity, football club, airline, shopping centre... anything and launch a co-branded credit card. I understand Nationwide outsource a lot of the back office for their credit card (not sure who to) but the consumer's agreement is with Nationwide.

The Co-op Group was and remains a consumer co-operative but the bank has always been a bank and not a building society (as Clydedale Bank will be for a time at least post-acquisition, if it goes ahead). 

I can’t remember who Nationwide outsource to but the same company are also used by other mainstream banks such as Barclaycard and Virgin. The admin centre is based in Leicester judging from the postal address they all seem to use .

Money_Grabber13579

Lightning360 said:

[Deleted User] said:

adamp87 said:

[Deleted User] said:

nmtd said:

I've just moved/combined ISA's from amongst others Nationwide into Virginmoney's 5.25% fixed rate cash ISA in part to avoid the £85k protection cap of having money in one institution. What happens to the protection value if there is a takeover, and what action can be taken especially if money on either side is in fixed term accounts, taking into account single name / joint named accounts?

Are you kidding - it will take them years to combine the two banking licences as they'll need things like the agreement of the various regulators and the Court of Session or English High Court...

The Yorkshire bank/Virgin takeover seemed to move quite quickly to be fair.

Surprised Virgin would sell so soon. Another set of banks gone from the highstreet though. There’s usually one near Nationwide I’ve found 

Virgin is just a brand that Virgin Enterprises licence for a fee
Clydesdale should have used one their existing brands and ditched the Virgin brand when they took it over.

They probably wanted a brand that wasn't specific to a certain location.

Does that matter that much? Halifax isn’t only located in Halifax and that doesn’t seem to do them any harm.

EarthBoy

The Abbey National (now Santander), Leeds Permanent (merged with Halifax), and National & Provincial (merged with Abbey National) Building Societies all had their own credit cards. 

Yorkshire Building Society also offered one, but that was issued by Cooperative Bank, and just branded YBS.

WillPS

EarthBoy said:

The Abbey National (now Santander), Leeds Permanent (merged with Halifax), and National & Provincial (merged with Abbey National) Building Societies all had their own credit cards. 

Thank you, that's interesting. I perhaps should have qualified "in the present century"! Were these all their own credit cards and not partner cards like the Leeds BS one described above? I've seen a lot of early credit cards were in fact dual-badged Barclaycards or American Express cards.

EarthBoy

The Abbey National credit card was originally issued by them directly, but later they sold the business, although I can't remember who to, and kept the branding.  A few years later they bought it back and ran it themselves again. 

The National & Provincial card was issued by N & P.  I don't know about the Leeds Permanent card as I never had one of those. 

Talking of dual badged cards, the Yorkshire Bank credit card was originally issued by Barclays. It was called the "Yorkshire Bank Barclaycard", it even said that on the front. It wasn't until the late 80s, or early 90s that they ended that partnership and issued their own card.  

TheBanker

EarthBoy said:

The Abbey National credit card was originally issued by them directly, but later they sold the business, although I can't remember who to, and kept the branding.  A few years later they bought it back and ran it themselves again. 

The National & Provincial card was issued by N & P.  I don't know about the Leeds Permanent card as I never had one of those. 

Talking of dual badged cards, the Yorkshire Bank credit card was originally issued by Barclays. It was called the "Yorkshire Bank Barclaycard", it even said that on the front. It wasn't until the late 80s, or early 90s that they ended that partnership and issued their own card.  

Abbey National (who I think had re-branded as Abbey at the time) sold their credit card book to MBNA, who operated it as a white labelled Abbey credit card. When Santander took over, they bought the book back and took it in house. I have a feeling N&P cards were included in this as by then Abbey had acquired/merged with N&P, 

Re Yorkshire Bank and Barclays, I have a feeling that Barclays used to be a shareholder in Yotkshire Bank, so not that strange that issued Barclaycards. In the future Teso credit cards will be managed by Barclaycard. 

wmb194

A firm offer is now in, £2.9bn. This is 218p per VMUK share plus a 2p dividend.

https://www.londonstockexchange.com/news-article/NBS/recommended-cash-offer-for-virgin-money-uk-plc/16387686

WillPS

Interesting tidbit buried in there:

"This includes Nationwide's unique Branch Promise, which we are extending until at least the start of 2028. The Promise will also apply to Virgin Money branches."

Presume that'd still allow them to close one branch or the other in areas where they have both.

Lightning360

WillPS said:

Interesting tidbit buried in there:

"This includes Nationwide's unique Branch Promise, which we are extending until at least the start of 2028. The Promise will also apply to Virgin Money branches."

Presume that'd still allow them to close one branch or the other in areas where they have both.

The promise already allows them to close branches in towns/cities with multiple Nationwide branches, and also allows them to close branches for reasons "outside their control". I find it incredibly misleading that they can say "We aren't closing our branches" when that very same promise means they can close branches. But that just seems to be what the new Nationwide is like now.

Here's Nationwide's press release about the extension to their "promise".

Nationwide Building Society confirms offer for Virgin Money UK PLC and extends Branch Promise (nationwidemediacentre.co.uk)