Nationwide Customers to Receive £50 Thank You Payment After Virgin Money Acquisition

SWINDON, England — More than 12 million customers of Nationwide Building Society will soon receive a £50 payment each, totaling approximately £600 million, as a gesture of appreciation for their support following the organization’s acquisition of Virgin Money last year.

Nationwide, the UK’s largest building society, announced the payments on March 11, stating they will be issued between April 9 and May 14, depending on the beneficiaries’ account statuses. Most payments will be deposited directly into members’ accounts, while some will be sent by cheque due to account limitations.

This initiative follows Nationwide’s £2.8 billion acquisition of Virgin Money, consolidating its status as the UK’s second-largest mortgage lender. Debbie Crosbie, Nationwide’s chief executive, emphasized the importance of its members in maintaining the society’s financial stability, stating, “The Big Nationwide Thank You recognizes the role our members played in building the financial strength that made the deal possible.”

To qualify for the £50 payment, members must have held a Nationwide savings account or current account with a minimum balance of £100, or a mortgage, as of September 30, 2024. Eligible customers also had to complete at least one account transaction in the year leading up to that date. Approximately 4 million customers do not qualify for this payment, including those who exclusively used Virgin Money accounts.

Criticism arose surrounding the acquisition as Nationwide members were not permitted to vote on the decision, although Virgin Money members had that opportunity. Crosbie explained that Nationwide’s board deemed member approval unnecessary under the circumstances.

The recent payout is a part of what Crosbie describes as a continuing commitment to share the cooperative’s success with its members. This reflects previous distributions under the Fairer Share scheme, which has awarded over £700 million to members over the past two years. Crosbie noted, “As a mutual organization, we prioritize returning value to our members, and these payments are another way of demonstrating our commitment.”

Nationwide’s customer base consists of around 16 million members, making this payment the largest distribution of its kind for the society. It serves as an opportunity for those members to realize the benefits of mutual ownership, particularly following the significant expansion of the society’s services and market share as a result of the Virgin Money integration.

In terms of regional distributions, the payments will notably affect areas with a significant proportion of Nationwide members, such as the South East of England with 19.4% of payments, and London with 11.6%. The company plans to distribute detailed payment information to its members as the payout date approaches.

This initiative not only enhances customer satisfaction amidst growing scrutiny over member engagement but also seeks to maintain the positive momentum gained from the acquisition. As the banking industry continues to face changes and challenges, Nationwide aims to reinforce its position as a leading provider of banking services by promoting member-focused policies.