A mutual organization , also mutual society or simply mutual , is an organization (which is often, but not always, a company or business ) based on the principle of mutuality and governed by private law. Unlike a cooperative , members usually do not directly contribute to the capital of the organization, but derive their right to profits and votes through their customer relationship.
42-516: [REDACTED] Look up nationwide in Wiktionary, the free dictionary. Nationwide may refer to: Organisations [ edit ] Nationwide Building Society , a UK co-operative financial institution Nationwide Mutual Insurance Company , an insurance company based in Columbus, Ohio, US Nationwide Asset Services , a debt settlement company in
84-415: A computer centre and administrative office in the town since 1974 and head office departments had been gradually migrating to Swindon. Nationwide launched an early UK internet banking service on 27 May 1997. In 1999, Nationwide, together with various UK tabloid newspapers and media, launched a campaign against controversial cash machine fees. The campaign reached a peak when Barclays Bank announced
126-631: A direct savings branch in Dublin , Ireland called Nationwide UK (Ireland), to distinguish it from the unconnected and now-defunct Irish Nationwide Building Society . It ceased all operations in the Irish Republic in 2017. In 2012, the Society announced that it would integrate the Cheshire, Derbyshire and Dunfermline building Societies into Nationwide. The Societies had operated under their own brands as divisions of
168-793: A mutual body with assets of over £160 billion and around 13 million members. Portman's earliest component was the Provident Union Building Society founded in Ramsbury, Wiltshire in 1846. In the financial crisis of 2007–2008 , the Nationwide acted to safeguard the mutual sector, acquiring the ailing Cheshire and Derbyshire building societies in September 2008, followed by the Dunfermline Building Society on 30 March 2009. On 24 March 2009, Nationwide Building Society opened
210-403: A noise rock album by Surgery Buildings [ edit ] Nationwide Arena , a multipurpose arena in Columbus, Ohio, US See also [ edit ] Nationwide League (disambiguation) Topics referred to by the same term [REDACTED] This disambiguation page lists articles associated with the title Nationwide . If an internal link led you here, you may wish to change
252-470: A plan to charge all customers of rival banks and financial providers, including those of Nationwide, £1 for every cash machine withdrawal made from a Barclays-owned cash machine . This prompted Nationwide to warn Barclays that it would take legal action against the bank if it did not back down. Nationwide claimed Barclays had broken the rules of the LINK network of cash machines, which the bank had joined earlier in
294-699: Is a major provider of both mortgage loans and savings in the UK, as well as personal banking such as loans, credit cards, bank accounts and insurance products. For the 2015/2016 Preliminary Results (April 2015–April 2016), underlying profits were up 9% to £1.337 billion, while statutory profits rose by 23% to £1.279 billion. Cost income ratio was 53.9%. Common Equity Tier 1 and leverage ratios improved to 23.2% and 4.2%. Gross and net lending were at £32.6 billion and £9.1 billion respectively. Nationwide helped 57,200 people buy their first home. Member deposits increased by £6.3 billion. Nationwide's long-term credit rating , as of
336-532: Is the largest retail bank in the United Kingdom, and the world's largest building society , serving over 16 million members. It operates as a British mutual financial institution, meaning it is owned by and run for the benefit of its members. Nationwide is also the seventh largest cooperative financial institution globally. The Society's headquarters are located in Swindon , England. Nationwide Building Society
378-416: Is therefore owned by, and run for the benefit of, its members – it has no external shareholders to pay in the form of dividends , and as such does not usually seek to maximize and make large profits or capital gains . Mutuals exist for the members to benefit from the services they provide and often do not pay income tax . Surplus revenue made will usually be re-invested in the mutual to sustain or grow
420-613: The Clydesdale Bank branding. Virgin Money's shareholders approved the deal on 22 May and it is expected to complete by the end of the year. On 31 May, the Competition and Markets Authority said that they would be investigating the proposed merger regarding the potential lessening of competition within the banking sector in the UK. On 19 July, the Competition and Markets Authority approved
462-554: The 1980s. Savings and loan industry deregulation and the late 1980s savings and loan crisis led many to change to stock ownership, or in some cases into banks . Many large U.S.-based insurance companies, such as the Prudential Insurance Company of America and the Metropolitan Life Insurance Company have demutualized , with shares of stock being distributed to their policyholders to represent
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#1732852506001504-684: The 239 houses was granted in 2019. The homes will be EPC A rated and built on a not-for-profit model. In 2021 the development won the ‘Building for a Healthy Life’ prize as part of the Housing Design Awards. In March 2022, Kevin Parry replaced David Roberts as chairman; and in June 2022, Debbie Crosbie , who had been CEO of TSB Bank , succeeded Joe Garner , as chief executive. In October 2023 Nationwide Building Society committed to its biggest rebrand since 1987, replacing its iconic ‘village icon’. The move
546-625: The British Co-operative Union. The new name was put to a member vote, with members voting 135,675 to 15,585 in favour. In 1987, the Northampton-based Anglia Building Society merged with Nationwide. The new society was known as Nationwide Anglia Building Society at first, but the Anglia name was dropped in 1991. In 1992, Nationwide moved its head office to Nationwide House, Pipers Way, Swindon. It had been operating
588-638: The CEO's compensation rising 45% to £2.25 million by 2012 the board's levels of pay attracted criticism in The Guardian , and The Huffington Post . Nationwide has also had to pay out over £473 million of compensation to customers for the mis-selling of PPI. Nationwide had to scrap its intentions to pursue a digital business current account in April 2020, due to the effects of the COVID-19 pandemic . The society has said
630-515: The Nationwide League Kenyan Nationwide League , a league below the top tier of Kenyan football TV programmes [ edit ] Nationwide (TV programme) , a British current affairs series (1969–1983) Nationwide (Australian TV programme) , a current affairs programme (1979–1984) Nationwide (Irish TV programme) , a regional news programm Music [ edit ] Nationwide (album) (1990),
672-535: The Nationwide banner over the next 6 years with the Virgin Money brand eventually disappearing. Nationwide intends to remain as a building society and for the "medium-term" the Virgin Money business would remain its own legal entity with its own banking licence. Nationwide aims to not make any material changes to Virgin Money's 7,300 employees "in the near term". Virgin Money currently issue Scottish bank notes under
714-554: The Society as chief executive on 5 April 2016. In May 2016, the Society confirmed that it would be closing its subsidiary on the Isle of Man , Nationwide International, following a review of its business. The branch, based in Douglas , provided a range of offshore savings accounts in euro , pound sterling and US dollars . It held assets in excess of £2.76 billion as at 31 March 2008, increasing to £3.69 billion by 31 March 2009, making it one of
756-603: The Society. The rebranding of each business was phased, with the Dunfermline first to be merged in June 2014. The Cheshire and Derbyshire followed in October and November 2014 respectively. On 22 May 2015, it was announced that the Society's chief executive, Graham Beale, intended to retire. On 16 November 2015, Nationwide announced that Joe Garner, CEO of Openreach , would succeed Graham as Nationwide CEO in Spring 2016. Joe Garner joined
798-738: The US Nationwide Airlines (disambiguation) , several airlines Sport [ edit ] Nationwide Series , or Nationwide formerly the Busch Series and now Xfinity Series, was an auto race series sponsored by the Nationwide Mutual Insurance Company Nationwide Championship , (1991–2000), a golf tournament in Georgia, US Nationwide Tour (2003–2011), the former name of a second-tier men's golf tour English Football League , formerly called
840-659: The acquisition. On 1 October, Nationwide completed its acquisition of Virgin Money, meaning one in three people in the UK have a connection to Nationwide. Nationwide reported a £2.3 billion gain from its acquisition of Virgin Money, though its profits declined. Pre-tax profit dropped to £568 million for the six months to September, down from £989 million, partly due to its £100 Fairer Share Payment and competitive savings rates. CEO Debbie Crosbie noted that future profits from Virgin Money would benefit customers. Virgin Money's profit rose to £558 million, driven by cost cuts. Richard Branson , Virgin Money's founder, made £724 million from
882-531: The building society into a bank. Society members again proposed a resolution in 2001 for another vote by Nationwide members to convert the society to a bank . The resolution was rejected by the Nationwide board on legal grounds. In the wake of the financial crisis of 2007–08 , executive pay practices came under increasing scrutiny at Nationwide as in the rest of the financial sector. The Building Society Members' Association began to campaign against acceptance of remuneration reports at AGMs in 2009, and with
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#1732852506001924-409: The clients in the form of dividend distributions, reduced future premiums or paid up additions to the policy value. This is a competitive advantage to such companies—the idea of owning a piece of the company could be more attractive to some potential clients than the idea of being a source of profits for investors. In the typical stock company, profits go to shareholders. In contrast, a mutual manages
966-501: The co-operative movement are usually known as credit unions or cooperative banks rather than mutuals. Various types of financial institutions around the world are mutuals, and examples include: Some mutual financial institutions offer services very similar to (if not the same as) those of a commercial bank . In some markets, mutuals offer very competitive interest rates and fee tariffs on savings and deposit accounts , mortgages and loans . The members who save and borrow with
1008-400: The company in the best interests of the customers. Furthermore, a mutual company is able to focus on a longer horizon than a typical company. Some mutual insurance companies make this claim explicitly. In more general terms, mutual organizations are able to minimize the principal–agent problem by removing one stakeholder, the investor-owner, in favor of one of the other stakeholders, usually
1050-568: The contractor. In April 2017, the Society confirmed that it would be closing its subsidiary on the Republic of Ireland, Nationwide UK (Ireland), following a review of its business. Its branch at 13 Merrion Row, Dublin 2 closed on 31 May 2017. The remainder of the business closed at the end of the year. Nationwide announced it would be building a new community at Oakfield in Swindon working in partnership with Swindon Borough Council. Planning permission for
1092-446: The customer, who becomes both user and joint owner of the business. However, the mutual form of ownership also has disadvantages. One example is that mutual companies have no shares to sell and hence no access to equity markets . At one time, most major U.S. life insurers were mutual companies. For many years, the tax status of such organizations was open to dispute, as they were technically nonprofit organizations. Eventually, it
1134-407: The deal, which includes £310 million for Nationwide's use of the Virgin Money brand for up to six years. Nationwide is committed to staying mutual and is keen to emphasise that it has members rather than shareholders. Its mutual status has been challenged. Nationwide was by far the largest British building society that did not convert to a bank in the wave of demutualisations that occurred from
1176-727: The financial year 2021/2022, Nationwide had assets of around £272.4 billion compared to £483 billion for the entire building society sector, making it larger than the remaining 42 British building societies combined. It is a member of the Building Societies Association , the Council of Mortgage Lenders and Co-operatives UK . The Society's origins lie in the Co-operative Permanent Building Society , founded in 1884. Based at New Oxford House, High Holborn, it changed its name in 1970 after deciding to leave
1218-595: The largest deposit takers in the Isle of Man. Nationwide confirmed it would close on 30 June 2017. On 1 October 2016, Carillion began providing services for Nationwide's headquarters in Swindon, 'specifically aligned to Nationwide's sustainability strategy'. This contract was expected to be worth approximately £350 million, building on an existing partnership of nearly nine years. When Carillion went into liquidation in January 2018, Nationwide took on 297 staff previously employed by
1260-490: The late 1980s to the late 1990s. In 1998, society members seeking a windfall, branded as carpetbaggers by the UK media, meant Nationwide members had to vote on whether to demutualise the society and float on the London Stock Exchange . The attempt failed, despite media reports of possible pay-outs to members of around £1,000 to £1,500 each, as Nationwide members voted by a narrow margin of 33,700 against converting
1302-408: The link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=Nationwide&oldid=1151152619 " Category : Disambiguation pages Hidden categories: Short description is different from Wikidata All article disambiguation pages All disambiguation pages Nationwide Building Society Nationwide Building Society
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1344-434: The mutual ultimately own the business. Mutualization or mutualisation is the process by which a joint stock company changes legal form to a mutual organization or a cooperative , so that the majority of the stock is owned by employees or customers. Demutualization or demutualisation is the reverse process, whereby a mutual may convert itself to a joint-stock company. This process became increasingly common in
1386-478: The organization, though some mutuals operate a dividend scheme similar to a cooperative. The primary form of financial business set up as a mutual company in the United States has been mutual insurance . Some insurance companies are set up as stock companies and then mutualized, their ownership passing to their policy owners. In mutual insurance companies, what would have been profits are instead rebated to
1428-457: The ownership interest they formerly had in the form of their interest as mutual policyholders. The Mutual of Omaha Insurance Company has also investigated demutualization, even though its form of ownership is embedded in its name. It is noted that other formerly mutual companies such as Washington Mutual , a former savings and loan association , have been allowed to demutualize and yet retain their names. The approximate British equivalent of
1470-518: The pandemic has driven down the medium-term interest rates , which the society believes has made the project unviable. Nationwide has committed to return the £50M grant from the Banking Competition Remedies scheme, which distributes funding that Royal Bank of Scotland was ordered to set aside as a condition of its 2009 bailout . The project is estimated to have cost members £70 million, but Nationwide have said that all staff working on
1512-544: The project will be redeployed elsewhere. It still provides some business savings accounts. When restrictions were lifted following the COVID-19 pandemic , Nationwide stated that its office-based staff could choose whether to work from home or return to the office. In December 2023 the building society announced that employees would be required to come into the office for two days per week from April 2024. Nationwide Building Society provides financial services both directly, and through 686 branches (as of 2023). Nationwide
1554-652: The savings and loan is the building society . Building societies also went through an era of demutualisation in the 1980s and 1990s, leaving only one large national building society and around forty smaller regional and local ones. Significant demutualisation also occurred in Australia and South Africa in the same era. Cooperatives are very similar to mutual companies. They tend to deal in primarily tangible goods and services such as agricultural commodities or utilities rather than intangible products such as financial services . Nevertheless, banking institutions with close ties to
1596-428: The second half of 2022, was A1 with Moody's , A+ with Standard & Poor's and A+ with Fitch Ratings . Nationwide owns several subsidiary companies, including: Mutual organisation A mutual exists with the purpose of raising funds from its membership or customers (collectively called its members ), which can then be used to provide common services to all members of the organization or society. A mutual
1638-400: The year. The following year, withdrawals from most cash machines owned by UK banks were made free for customers of all banks and building societies throughout the UK. In 2007, Nationwide members voted at its Annual General Meeting to donate at least 1% of pre-tax profits to charitable activities each year. Nationwide completed a merger with Portman Building Society on 28 August 2007, creating
1680-410: Was agreed that federal taxation would be based on their share of business: for instance, in years in which mutual companies represented half of the business, they would be responsible for half of the taxes paid by the industry. Many savings and loan associations were also mutual companies, owned by their depositors. As a form of corporate ownership the mutual has fallen out of favor in the U.S. since
1722-476: Was established through the amalgamation of approximately 250 smaller building societies over its history. Among the most notable mergers were the acquisition of Anglia Building Society in 1987 and the Portman Building Society in 2007. As of 2022, Nationwide ranked as the second largest provider of household savings and mortgages in the UK, holding a 10.3% market share in current accounts . For
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1764-479: Was part of a wider commitment to maintain a High Street presence as many banks continue to close branches. The move will see all 605 branches receive investment to enable the building society to protect face-to-face customer interactions. On 7 March 2024 Nationwide announced that they had made an offer to buy Virgin Money UK for £2.9 billion. Under the terms of the deal the resulting company would be rebranded under
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