Building thriving membership
Jay’s had her current account and savings with Nationwide for over 20 years. So, when she came to buy her first home, she turned to us again.
“I've been with Nationwide since I was little, and I’ve worked here for 15 years, so I didn’t think twice about choosing them for my mortgage. I took a look at some other providers, but Nationwide was the one for me.”
Jay also used our MyNationwide app to help her along the way.
“The app was great – I could ask questions any time and get the answers I needed.
As a first-time buyer that was super helpful as I was a bit clueless at the start of it all! I also used the calculators to check how much I could borrow and which rates were best for me.
I’ve always trusted them to look after my money, so it made perfect sense to trust Nationwide with my home. And with the money I saved, I bought my beautiful boxer puppy, Olive.”
“It made perfect sense to trust Nationwide with my home.”
We are owned by the 15.9 million members who we’re helping into a home, to save for the future, or to manage their everyday finances.
Our membership grew to its highest level in 2018/19 and we are doing more with our members. Our committed membership – members who have two or more of our products – grew from 3.2 million to 3.4 million1.
Members trusted Nationwide with more of their savings and this helped us grow deposits strongly by £6.0 billion (2018: £3.5 billion). We kept average deposit rates more than 50% above the market average, and launched attractive new rates on loyalty accounts. However, in an environment where mortgage rates are low, there are limits to how much we can pay to our savings members.
Despite economic uncertainties, mortgage volumes remained strong and our competitive mortgage pricing meant we lent more to homebuyers and landlords on both a gross and net basis.
We relaunched our home insurance proposition which was well received by members who took out 97,000 policies, almost 30% more than in 2018, and helped us become the top-placed insurance provider in the Institute of Customer Service’s UK Customer Satisfaction Index2.
More people are choosing Nationwide to manage their everyday finances; 794,000 new current accounts were opened this year (2018: 816,000) and our market share of main current accounts has reached 8% for the first time3. We hope to replicate this success in the small business market, with the launch of a business current account.
Customers become members when they choose Nationwide to help them buy a home, save, or manage their everyday banking, which means that mortgages, savings and current accounts are the foundation of our relationships with members. We grew our membership to a new high and members are doing more with us: the number of ‘committed’ members – those with two or more products – grew by 5% to 3.4 million.
Helping more members into homes
Overall, we lent more to help people into a home this year. Gross mortgage lending reached an all-time high of £36.4 billion (2018: £33.0 billion) and net lending was £8.6 billion (2018: £5.8 billion).
We’re working hard to expand home loan choices for members whether they are just starting their home journey, are established home owners, or are empty nesters.
We’ve supported new home buyers since our founding days, and this remains at the heart of our purpose. Last year, we helped a record 77,000 first time buyers, one in five of all first time buyers, into their own home.
For older members looking to access the value in their properties, our Later Life Lending range now offers three ways to borrow against their property in retirement, and we have a team of dedicated advisers to advise members on the option that suits them best.
We also improved our buy to let range and grew our lending to landlords through The Mortgage Works.
Saving for the future
Savers continue to be hard pressed by persistently low interest rates, and we continue to give them the best rates we can sustainably afford.
Overall, our members benefited from an extra £515 million in deposit interest compared with the market average (2018: £435 million). We launched a number of new products to reward loyalty and meet new needs. Our members responded enthusiastically, opening more than 470,000 new Single Access and Loyalty ISAs. Over 75,000 Future Saver accounts, a straightforward savings account for children, were also opened in the year.
Managing everyday finances
The number of people choosing Nationwide to look after their daily finances continues to grow. More people opened a new current account with Nationwide than any other brand4, with 794,000 (2018: 816,000) accounts opened this year. This takes our market share of all current accounts to just below 10%, and our share of main accounts to 8%5.
More than one in five of all switchers via the current account switching service chose Nationwide6 and we’re making it easier for people to open accounts with us. For example, you can now open our youth FlexOne account in 10 minutes and we will extend this swift account opening process to all our adult accounts from the summer of 2019.
Open for business
We are hoping to replicate our success in personal current accounts in the small business current account market. We will launch a straightforward business account, combining a market-leading digital platform with the personal service our colleagues give every day. We were successful in our bid for funding from the Banking Competition Remedy Limited’s Capability and Innovation Fund and will receive £50 million funding, which will accelerate the launch of new products and services for small businesses.