Job losses in Nationwide and Portman merger

by Gill Montia

Story link: Job losses in Nationwide and Portman merger

The Nationwide, which was already the UK’s largest building society, has completed its takeover of the Portman.

The enlarged building society will rank as the UK’s second biggest mortgage provider, after the Halifax.

The Nationwide expects the move to improve customer service and create efficiencies.

However, it is also expected to result in the closure of 100 branches and the loss of approximately 900 jobs.

The merger represents a further consolidation in what is left of the building society sector.

Demutualization was pioneered by Abbey National in 1989, after which most of the large building societies were either acquired by banks or converted into banks.

As a result, building society numbers have reduced from 151 around 20 years ago, to the current level of 59.

Many are regionally based and the Nationwide is the only society that can be truly be called a national organisation.

The merger will bring the Portman’s 1.2 million members into Nationwide, creating an enlarged society that will have approximately 13 million members.

On joining the Nationwide, Portman members will receive windfalls that will be paid in September of this year. These will typically be payments of between £200 and £1,000 each.