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0:04
Our case study is focused on
an institution which is based
in the UK known as the
Nationwide Building Society.
I will now cover the
Nationwide branch promise
as a potential method of
differentiation in
a crowded market.
For those that don't know,
which will be many of
you, Nationwide is
a very well-known financial
services brand in
the UK with branches on
many main streets or
high streets in towns,
cities, and even villages
across the land.
It acts and looks much like
a retail bank offering
many similar services.
But it is in fact
something called
a building society which is
a form of mutual organisation
owned by its members.
An important implication
is therefore, that it
does not have shareholders
to whom it is accountable.
It is able to act primarily in
its customers' interests without
considering other
stakeholder groups.
To give you an
idea of the scale,
it has 605 branches
across the UK.
18,000 staff and more than
16 million customers.
It's important to note that
Nationwide gives 1% of
its pre-tax profits
to charity to
emphasise its sense
of social purpose.
This is also reinforced
by the fact that
Nationwide has chosen to
remain a building society.
Whereas in the past, most
building societies converted
to bank status and
acquired shareholders.
1:29
Let's look at the
current context.
Many banks in the UK and further
afield are closing branches
as more customers choose
to complete the majority
of their banking or all of
it online or through
apps and other channels.
Of course, this leads to
concerns about the
access to services
for those who can't
use online services
or for some reason
choose not to.
Such individuals tend to
be older, less mobile,
and those with other
challenges in terms of
getting around or
interacting with technology.
A related concern is
the lack of access to
cash and obtaining cash for
those that prefer to use it.
There is a fear
that whole areas,
particularly poor areas
will become deserts with
no branches or access
to cash free of charge.
In one sense, this is
merely a consequence of
individual decisions taken on
a commercial basis by banks.
But the result can be a
detriment to society as a whole.
