As part of Nationwide’s 500 branch refurbishment programme being carried out over the next 5 years, the UK’s largest mutual has partnered with NCR to help transform its branch experience and banking services available on-line, on-mobile and via other digital channels for its members
First came a major core banking project, then serious digital banking investment and now the Nationwide is investing big time in the branch.
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Nationwide has made no secret of its ambitions to achieve a 10% share of the UK current account market.
As long ago as 2008, with a then market share of around 6%, it has thrown itself enthusiastically into updating its systems, innovating digitally and investing in its branch network.
First up came a five-year core banking transformation programme, with the first UK implementation of SAP Transactional Banking applications from the SAP for Banking suite of solutions.
A new range of current accounts followed – the institutions first such new product offerings in 25 years – as the Society ramped up its efforts to become a serious player in the UK banking market.
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By GlobalDataIn 2008, Nationwide told RBI that it was aiming for a 10% market share by 2015.
That has proved to be wildly optimistic; now it talks of achieving a 10% share by 2020.
It is however making among the winners of the seven-day account switching initiative and the 10% target looks achievable.
NBS’ mobile and digital offerings are assisting the Society to win new customers: it has added a net 250,000 current account customers in the six months to end October, bringing its market share up to 7%.
Evidence of digital banking investment paying off is evident from some quick stats: mobile banking log-ins up 40% year-on-year and mobile payment transactions have soared 50% year-on-year.
It has also been among the first adopters of video teller remote banking, rolled out across its 700 branch network, offering mortgage advice.
The Society’s latest investment project will see £500m invested in its branches over next five years, underlining Nationwide’s confidence in the future of the branch alongside its commitment to digital channels.
By providing customers with a choice of how, where and when they can bank, Nationwide says it will provide the best customer service and maintain its reputation as a personable place to bank in today’s digital society.
It has deployed NCR’s newest and most innovative ATM solutions at flagship branches in Swindon and across London as part of the branch project.
"We’ve listened to what customers want. This has led us to focus on the next generation of online and mobile services to complement traditional person to person interactions, creating an ‘always available’ 24/7 banking environment.
"Digitally enabled services and simplified processes will allow our members to choose when, where and how they wish to engage with us," said Barnaby Davis, divisional director for group retail strategy at Nationwide.
"The Society will continue to invest in its systems and infrastructure with strategic suppliers, such as NCR, to ensure that our members can manage their money wherever and however they choose to do so."
Nationwide’s investment in its branch network will include the re-definition of the branch with new layouts to enable more person to person conversations.
The design of NCR’s SelfServ 91 ATMs – carried out at NCR’s Dundee Centre of Excellence R&D centre – helps enable this, as Nationwide employees are better able to assist customers at the ATM, if the customer so wishes. Traditional teller lines, counters and glass screens will be reduced so that Nationwide staff are more readily available to speak to and advise customers on the branch floor.
"Achieving the right balance and integration between digital and physical banking channels is a challenge for most banks and building societies in the UK," said Rachel Nash, Director Financial Services at NCR UK.
"Nationwide has proved itself fearless when it comes to adopting and rolling out technology to provide value to its members and help drive its business. The implementation of our latest customer experience software platform will provide the flexibility for Nationwide to adopt new and emerging technologies across multiple channels in the future. The deployment of our state-of-the-art multifunction ATMs is just the latest example of innovation at the Society. We look forward to many more in the future."
According to NCR, the solutions will help NBS to reduce total cost of ownership by decreasing its dependence on legacy systems and streamlining duplicated processes. In addition, the aim is for NBS to reduce the time and cost to market for new banking services as they are delivered across all channels, including the new ATMs, and enable NBS to provide more value to customers via its self-service solutions by leveraging existing web services via ATM and other self-service solutions.
NBS posted pre-tax profits up by one-third to £802m for the six months to end September compared to the corresponding period last year.
Its gross mortgage lending market share increased by one percentrage point to 13.2% over the same period.
