Up to 500 hundreds are at risk after Nationwide announced that it would be integrating the Cheshire, Derbyshire and Dunfermline Building Societies into its main brand.
Nationwide, the UK's largest building society, acquired the three mutuals during the depths of the financial crisis.
Cheshire and Derbyshire became part of the Nationwide group in 2008, while Dunfermline followed in 2009.
As part of the integration process, around half the 91 branches operated by the three subsidiaries will be closed. The remainder will be re-branded to Nationwide.
Nationwide said that the proportion of its customers living within five miles of the bank would rise to 85% following the re-brand, which is expected to take around 18 months from the start of 2014.
It also wants to combine the societies to allow all the group’s customers to benefit from a vast investment to improve the IT system.
In a statement, Nationwide said that it would help to reallocate employees where possible.
It has already suggested that it may increase the quota at Caledonia House, the current headquarters of Dunfermline, which currently houses 300 employees.
Where relocation was not possible, employees "will be given access to appropriate training, support and advice that will help them find alternative work,” the society added.
End of an Era
The integration will end the smaller mutuals’ century-long affinity with the high street. The Derbyshire Building Society was founded in 1859, with the Dunfermline BS following in 1869, and the Cheshire in 1870.
The move is also likely to end any remaining speculation about Nationwide’s interest in the 316 branches the Royal Bank of Scotland.
Nationwide announced its interest in the branches late last year, though it expressed concerns about the synchronisation of the banks’ IT systems – the issue that had caused Santander to withdraw its bid for the branches (read more).
Keith McDonald
Which4U Editor
If you enjoyed this article:
- Check out the latest articles on our Finance Blog.
- Sign up for our free e-newsletter.
- Follow us on Twitter for regular updates.
{loadmodule php,TwitterButton}