Nationwide take over of Virgin Money

TheBanker

[Deleted User] said:

RG2015 said:

[Deleted User] said:

RG2015 said:

[Deleted User] said:

RG2015 said:

[Deleted User] said:

Hoenir said:

[Deleted User] said:

boingy said:

The buy out will make Nationwide "the UK's second largest mortgage and savings group". Nothing to do with benefitting members or customers. It's just a quick way to grow.

As a Building Society, it's main raison d'être is to benefit it's members (owners) and simply becoming the UK's second largest mortgage and savings group doesn't necessarily do that...

Remaining a UK mutually owned lender. Is far better than being taken over by a US "maximum profit / send the profits abroad to shareholders" bank.  

Mutually owned is just an ownership model - it doesn't mean that an organisation is run better or worse than a standard PLC. I would contend that Nationwide is worse as all it's products are now mediocre (definitely not any better than it's PLC brethren) yet unlike them it's not produced a dividend to it's owners unless you count the haphazard £100 payments last year.

Most banks go though a spell with better products and then return to mediocrity. Nationwide is no different. I currently have an 8% regular saver (now 6.5%). HSBC, TSB, Barclays and Halifax currently have nothing much  to write home about.

The Nationwide supermarket cashback a year ago was pretty decent, and many started out with the Flexdirect current account with 5% interest on up to £1,000.

Are you seriously suggesting that either 'flash in the pan' offer demonstrates benefits of mutuality?!

Take the latter: FlexDirect is a classic retail banking loss leader -  after requiring you depositing 1K per month, you have a potential £4.16 monthly credit interest for that first year. This normalises to a potential benefit of 83p monthly credit interest - for which you give up Nationwide branch access, can't use your local Post Office to make deposits, pay circa 40% for borrowing and pay 2.99% overseas usage. Fandabidozi!

I am just stating facts. I don’t have an agenda. It was not my intention to infer any benefits of mutuality.

I was just challenging your contention that “Nationwide is worse as all it’s products are now mediocre” Just like most of the banks most of the time.

It's not a contention - their products are mediocre (even the FlexDirect that you noted) & their infrastructure is creaking (their payments services are frequently down on either a planned or unplanned basis like a few days ago)

You said;

"I would contend that Nationwide is worse as all it's products are now mediocre"

You cannot contend something and then say it's not a contention.

True.

It's been corrected now to remove 'the contention' - Nationwide is worse as all it's products are now mediocre...

I don't think that's true.

Their savings rates are not as good as those available elsewhere, I agree. But they are probably the best available to customers who need or want access through a branch. Personally, I'm not bothered about having a local branch, but a lot of people are and Nationwide have chosen to go down a different route to most of their competitors.

Their current account in my mind is neither here nor there, although some people seem to rate the paid-for account with travel insurance etc. Unless you pay for extras, or there's a 'gimic' like the Chase 1% cashback, I don't think there's much to choose between current accounts. Again, Nationwide have better branch access than almost any of their competitors, which will be really important to some people. 

When I last remortgaged, Nationwide was the cheapest for the amount and term I wanted, although there wasn't much in it. I wouldn't describe them as mediocre. 

Bridlington1

[Deleted User] said:

RG2015 said:

[Deleted User] said:

RG2015 said:

[Deleted User] said:

RG2015 said:

[Deleted User] said:

Hoenir said:

[Deleted User] said:

boingy said:

The buy out will make Nationwide "the UK's second largest mortgage and savings group". Nothing to do with benefitting members or customers. It's just a quick way to grow.

As a Building Society, it's main raison d'être is to benefit it's members (owners) and simply becoming the UK's second largest mortgage and savings group doesn't necessarily do that...

Remaining a UK mutually owned lender. Is far better than being taken over by a US "maximum profit / send the profits abroad to shareholders" bank.  

Mutually owned is just an ownership model - it doesn't mean that an organisation is run better or worse than a standard PLC. I would contend that Nationwide is worse as all it's products are now mediocre (definitely not any better than it's PLC brethren) yet unlike them it's not produced a dividend to it's owners unless you count the haphazard £100 payments last year.

Most banks go though a spell with better products and then return to mediocrity. Nationwide is no different. I currently have an 8% regular saver (now 6.5%). HSBC, TSB, Barclays and Halifax currently have nothing much  to write home about.

The Nationwide supermarket cashback a year ago was pretty decent, and many started out with the Flexdirect current account with 5% interest on up to £1,000.

Are you seriously suggesting that either 'flash in the pan' offer demonstrates benefits of mutuality?!

Take the latter: FlexDirect is a classic retail banking loss leader -  after requiring you depositing 1K per month, you have a potential £4.16 monthly credit interest for that first year. This normalises to a potential benefit of 83p monthly credit interest - for which you give up Nationwide branch access, can't use your local Post Office to make deposits, pay circa 40% for borrowing and pay 2.99% overseas usage. Fandabidozi!

I am just stating facts. I don’t have an agenda. It was not my intention to infer any benefits of mutuality.

I was just challenging your contention that “Nationwide is worse as all it’s products are now mediocre” Just like most of the banks most of the time.

It's not a contention - their products are mediocre (even the FlexDirect that you noted) & their infrastructure is creaking (their payments services are frequently down on either a planned or unplanned basis like a few days ago)

You said;

"I would contend that Nationwide is worse as all it's products are now mediocre"

You cannot contend something and then say it's not a contention.

True.

It's been corrected now to remove 'the contention' - Nationwide is worse as all it's products are now mediocre...

Though I wouldn't call their 6.5% regular saver ``mediocre" to be honest, and they still haven't cut the rate on their NLA 8% RS (which is a valued part of my collection).

Their student account isn't too bad either IMHO, I seem to recall they were offering £100 last year plus the 0% OD.

Their Flex Direct account pays 5% interest for the first year, which is a higher rate of interest than any other current account offers to my knowledge.

Some of their products are mediocre I'd agree, but not all IMHO.

RG2015

Bridlington1 said:

M[Deleted User] said:

RG2015 said:

[Deleted User] said:

RG2015 said:

[Deleted User] said:

RG2015 said:

[Deleted User] said:

Hoenir said:

[Deleted User] said:

boingy said:

The buy out will make Nationwide "the UK's second largest mortgage and savings group". Nothing to do with benefitting members or customers. It's just a quick way to grow.

As a Building Society, it's main raison d'être is to benefit it's members (owners) and simply becoming the UK's second largest mortgage and savings group doesn't necessarily do that...

Remaining a UK mutually owned lender. Is far better than being taken over by a US "maximum profit / send the profits abroad to shareholders" bank.  

Mutually owned is just an ownership model - it doesn't mean that an organisation is run better or worse than a standard PLC. I would contend that Nationwide is worse as all it's products are now mediocre (definitely not any better than it's PLC brethren) yet unlike them it's not produced a dividend to it's owners unless you count the haphazard £100 payments last year.

Most banks go though a spell with better products and then return to mediocrity. Nationwide is no different. I currently have an 8% regular saver (now 6.5%). HSBC, TSB, Barclays and Halifax currently have nothing much  to write home about.

The Nationwide supermarket cashback a year ago was pretty decent, and many started out with the Flexdirect current account with 5% interest on up to £1,000.

Are you seriously suggesting that either 'flash in the pan' offer demonstrates benefits of mutuality?!

Take the latter: FlexDirect is a classic retail banking loss leader -  after requiring you depositing 1K per month, you have a potential £4.16 monthly credit interest for that first year. This normalises to a potential benefit of 83p monthly credit interest - for which you give up Nationwide branch access, can't use your local Post Office to make deposits, pay circa 40% for borrowing and pay 2.99% overseas usage. Fandabidozi!

I am just stating facts. I don’t have an agenda. It was not my intention to infer any benefits of mutuality.

I was just challenging your contention that “Nationwide is worse as all it’s products are now mediocre” Just like most of the banks most of the time.

It's not a contention - their products are mediocre (even the FlexDirect that you noted) & their infrastructure is creaking (their payments services are frequently down on either a planned or unplanned basis like a few days ago)

You said;

"I would contend that Nationwide is worse as all it's products are now mediocre"

You cannot contend something and then say it's not a contention.

True.

It's been corrected now to remove 'the contention' - Nationwide is worse as all it's products are now mediocre...

Though I wouldn't call their 6.5% regular saver ``mediocre" to be honest, and they still haven't cut the rate on their NLA 8% RS (which is a valued part of my collection).

Their student account isn't too bad either IMHO, I seem to recall they were offering £100 last year plus the 0% OD.

Their Flex Direct account pays 5% interest for the first year, which is a higher rate of interest than any other current account offers to my knowledge.

Some of their products are mediocre I'd agree, but not all IMHO.

As I stated a few posts back, Nationwide is no different to most of the main banks in terms of products. Good, bad and indifferent.

Nothing at all in the products to suggest a mutual is any different to a corporate 

TheBanker

RG2015 said:

Bridlington1 said:

M[Deleted User] said:

RG2015 said:

[Deleted User] said:

RG2015 said:

[Deleted User] said:

RG2015 said:

[Deleted User] said:

Hoenir said:

[Deleted User] said:

boingy said:

The buy out will make Nationwide "the UK's second largest mortgage and savings group". Nothing to do with benefitting members or customers. It's just a quick way to grow.

As a Building Society, it's main raison d'être is to benefit it's members (owners) and simply becoming the UK's second largest mortgage and savings group doesn't necessarily do that...

Remaining a UK mutually owned lender. Is far better than being taken over by a US "maximum profit / send the profits abroad to shareholders" bank.  

Mutually owned is just an ownership model - it doesn't mean that an organisation is run better or worse than a standard PLC. I would contend that Nationwide is worse as all it's products are now mediocre (definitely not any better than it's PLC brethren) yet unlike them it's not produced a dividend to it's owners unless you count the haphazard £100 payments last year.

Most banks go though a spell with better products and then return to mediocrity. Nationwide is no different. I currently have an 8% regular saver (now 6.5%). HSBC, TSB, Barclays and Halifax currently have nothing much  to write home about.

The Nationwide supermarket cashback a year ago was pretty decent, and many started out with the Flexdirect current account with 5% interest on up to £1,000.

Are you seriously suggesting that either 'flash in the pan' offer demonstrates benefits of mutuality?!

Take the latter: FlexDirect is a classic retail banking loss leader -  after requiring you depositing 1K per month, you have a potential £4.16 monthly credit interest for that first year. This normalises to a potential benefit of 83p monthly credit interest - for which you give up Nationwide branch access, can't use your local Post Office to make deposits, pay circa 40% for borrowing and pay 2.99% overseas usage. Fandabidozi!

I am just stating facts. I don’t have an agenda. It was not my intention to infer any benefits of mutuality.

I was just challenging your contention that “Nationwide is worse as all it’s products are now mediocre” Just like most of the banks most of the time.

It's not a contention - their products are mediocre (even the FlexDirect that you noted) & their infrastructure is creaking (their payments services are frequently down on either a planned or unplanned basis like a few days ago)

You said;

"I would contend that Nationwide is worse as all it's products are now mediocre"

You cannot contend something and then say it's not a contention.

True.

It's been corrected now to remove 'the contention' - Nationwide is worse as all it's products are now mediocre...

Though I wouldn't call their 6.5% regular saver ``mediocre" to be honest, and they still haven't cut the rate on their NLA 8% RS (which is a valued part of my collection).

Their student account isn't too bad either IMHO, I seem to recall they were offering £100 last year plus the 0% OD.

Their Flex Direct account pays 5% interest for the first year, which is a higher rate of interest than any other current account offers to my knowledge.

Some of their products are mediocre I'd agree, but not all IMHO.

As I stated a few posts back, Nationwide is no different to most of the main banks in terms of products. Good, bad and indifferent.

Nothing at all in the products to suggest a mutual is any different to a corporate 

I think that's the case for all mutuals though. Yorkshire and Coventry Building Societies have some good savings accounts, but they tend to be accounts that only allow relatively low balances. The same for the smaller local Building Societies. And while their mortgage rates tend to hover close to the top of the tables, there's not a lot in it compared to some of the banks.

But as I said a few posts back, the big difference between Nationwide and the main banks is their branch network. Not important to me, as I prefer to use digital banking, but very important to some people, and I think being able to use a branch is part of a 'product'. A good proportion of Nationwide's income is probably being used to support their branches, whereas the high street banks have, without fail, all closed huge numbers of branches over the last decade. 

pridehappy

Nationwide is my favourite bank out of the current UK options, so I’m pleased it’s being taken over by someone who I can trust. 

However, I use Nationwide and Virgin Money for my main banking. As much as I love Nationwide, I don’t fancy having both main current accounts with one provider, so I’ve just switched to NatWest from Virgin Money for £200. 

I’m aware they aren’t transferring customers just yet, but it’s probably inevitable in the future, or they’ll be using the same tech systems at least.

EarthBoy

pridehappy said:

Nationwide is my favourite bank out of the current UK options, so I’m pleased it’s being taken over by someone who I can trust. 

Nationwide isn't being taken over by anybody.  It's buying Virgin Money.

Zanderman

EarthBoy said:

pridehappy said:

Nationwide is my favourite bank out of the current UK options, so I’m pleased it’s being taken over by someone who I can trust. 

Nationwide isn't being taken over by anybody.  It's buying Virgin Money.

That post confused me too but I think the 'it's' in pridehappy's sentence referred to Virgin. 

So it should be read as "Nationwide is my favourite bank out of the current UK options, so I’m pleased it [Virgin] is being taken over by someone [Nationwide] who I can trust. "

WillPS

Except Nationwide isn't a bank...

Lightning360

WillPS said:

Except Nationwide isn't a bank...

Except it essentially functions as one and seems to be ignoring it is a building society after its recent rebrand.

WillPS

Lightning360 said:

WillPS said:

Except Nationwide isn't a bank...

Except it essentially functions as one and seems to be ignoring it is a building society after its recent rebrand.

Partially agree, but just pointing out another element of @pridehappy 's statement which makes the whole thing hard to square.