Nationwide Bank, a US-based financial institution, has revealed its plan to cease its operations as a full-service, federally chartered retail bank.
Instead, the company will refocus on its other banking business particularly on trust operations to support its retirement plan business.
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As part of its transition plan, the Ohio-based company will transfer all retail deposits in the bank to another institution that will serve customers and staff.
Explaining its decision to scrap retail banking business, Nationwide said that a significant additional investment would be required to gain relevance and be competitive in retail banking sector.
Until a final decision is taken about the next steps, the deposits and loans at Nationwide Bank will remain accessible to its customers.
The closure of retail banking unit is expected to affect 240 employees. Nationwide has collaborated with them to find other jobs for the affected staff.
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By GlobalDataThe bank serves a grouping of Nationwide’s employees, policyholders and the public. The company has also been used to distribute money from life-insurance claims.
