Nationwide expands into Irish Republic

by Gill Montia

Story link: Nationwide expands into Irish Republic

Nationwide Building Society has announced plans to set up a new business in the Irish Republic.

The society says it is keen to diversify its geographical base and fund opportunities in the Republic.

It will initially offer savings accounts that will be available online, by post and by telephone but as yet, there are no plans to offer mortgages.

The move will give Nationwide a business in the eurozone, potentially providing it with access to European Central Bank funds.

This strategy could ease future funding problems for the lender, which as the UK’s largest building society accounts for over 50% of all outstanding mortgage lending by UK building societies.

In the UK, Nationwide operates via 800 branches but says it has no plans for a High Street presence in the Irish Republic.

Neither will savers in the Republic be voting members of the society because they will be restricted to deposit accounts only.

It is understood that a launch could be early next year but Nationwide has indicated that it will make a further announcement once its plans have been approved by the Financial Services Authority and the Irish Financial Services Regulatory Authority.