Nationwide to close 130 agencies
Nationwide has announced that it is axing its network of 130 agencies at the end of this year.The agencies, which are typically based in firms such as solicitors and estate agents, provide basic banking services to local communities that often do not have a dedicated branch.
But the mutual said, as part of an ongoing review of its distribution arrangements, it had decided to withdraw from third party agencies at the end of December, as they were no longer economically sustainable.
It is not known exactly how many jobs will be affected by the move, as although the agencies are branded Nationwide, the staff that operate them are not actually employed by the group.
The mutual said 21 Nationwide employees would be affected by the decision, and it was currently working closely with them to find them alternative positions either within or outside of the Nationwide group.
Matthew Wyles, group distribution director at Nationwide, said: "This decision was reached after very careful consideration.
"During these difficult times, every penny that we spend on unprofitable activity stops us returning value to our members in the form of better rates and products.
"Regrettably, it is no longer sustainable for us to operate an agency network which 95% of our customers never use."
He added that the group appreciated the impact the move would have on some of its customers, although he said there were still a wide range of ways people could access its products and services, including through the internet, by telephone or through its 700 branches across the UK.
The decision comes just two months after Lloyds Banking Group said it was closing its 265-strong network of Halifax-branded agencies as part of ongoing cost cutting.
Matthew Wyles, group distribution director at Nationwide, said: "This decision was reached after very careful consideration.
"During these difficult times, every penny that we spend on unprofitable activity stops us returning value to our members in the form of better rates and products.
"Regrettably, it is no longer sustainable for us to operate an agency network which 95% of our customers never use."
He added that the group appreciated the impact the move would have on some of its customers, although he said there were still a wide range of ways people could access its products and services, including through the internet, by telephone or through its 700 branches across the UK.
The decision comes just two months after Lloyds Banking Group said it was closing its 265-strong network of Halifax-branded agencies as part of ongoing cost cutting.
© 2012 Press Association