Nationwide Building Society is a British financial institution founded in 1846. It is the largest company solely focused on deposits and loans. The company's philosophy is based on the motto "More than a financial institution", and it values sustainable business practices, social responsibility, and customer orientation.
The business model of Nationwide Building Society includes several divisions, including deposits, loans, and insurance.
Deposits:
Nationwide Building Society offers a variety of deposit products, including savings accounts, current accounts, bonds, and ISAs (Individual Savings Accounts). There are different savings accounts and current accounts with varying interest rates to meet the different needs of customers. Nationwide is also active in the mortgage sector, both in granting loans and providing insurance for them.
Loans:
In the loan sector, Nationwide Building Society offers a wide range of loans, including mortgage loans, personal loans, and loans for small businesses.
Mortgage loans: The emphasis is on standard fixed-rate and variable mortgage products, including options for first-time buyers, remortgaging, and second mortgages.
Personal loans: Customers can choose from different credit options, including unsecured loans and secured loans, refinancing loans, and loan extensions.
Small business loans: On the business side, Nationwide Building Society offers business loans and overdrafts.
Insurance:
Nationwide Building Society also offers a variety of insurance products, including travel insurance, home insurance, car insurance, and liability insurance. Additionally, legal protection insurance is available.
Additional offerings:
Nationwide Building Society also provides various financial advisory tools, such as a savings calculator, a budget calculator, and an investment checklist. Additional support offerings include newsletters and magazines to assist customers in financial matters. Overall, the aim is to provide a form of financial education.
In recent years, Nationwide Building Society has also focused on digital offerings and channels. This includes an app combined with online banking to access one's financial portfolio or perform money transfers on the go. The only missing feature is a credit card.
Nationwide Building Society is a mutual society, meaning it is owned by its members and prioritizes their needs. The company relies on its members who obtain their loans and savings accounts - this sets it apart from a purely consumer bank. Additionally, Nationwide Building Society is an independent, non-publicly traded company. This allows it to serve customers, rather than shareholders, without the pressure to generate short-term profits.
In summary, the business model of Nationwide Building Society is characterized by deposit-taking, lending, and insurance. With competitive interest rates, a wide range of borrowing and savings options, and ongoing digitalization of its offerings, the company remains focused on its customers. The mutual society structure overall ensures a service-oriented approach and financial security.