Nationwide announces it has no plans to issue redundancies

Nationwide Building Society will pour another £1.3billion of funds into in technological advancements to 'simplify' its operations, it announced today.
But the mutual giant insisted the digital transformation will not cost jobs, and that its branch network 'will be maintained'.
Over the next 5 years, between 750 and 1,000 jobs are predicted to be created in a new 'technology hub', with the additional money bringing Nationwide's total tech investment plans to £4.1billion.
The lender said it will help 'simplify its technology estate and build new technology platforms to enable growth and diversification, and drive forward digital, data and analytic strategies.'
In spite of the substantial growth in the digital sector, Nationwide have confirmed that there are no plans for redundancies in other parts of the business and assured customers that its branch network will be fully maintained.
The added tech investment will put a dent in Nationwide's finances, with the mutual now expecting to suffer a £200million to £250million hit in the current financial year.
Roughly half of that sum will be recognised in the first half with that annual cost recurring over the next five years.
'This full-year range represents a reasonable estimate for the ongoing annualised impact on profits over the period to 2023 as we deliver the programme,' the building society said. 
Nationwide Building Society chief executive, Joe Garner, insisted that Nationwide is in a position of 'financial strength' and that its capital levels are at a record high.
He said: 'At a time when customer expectations of service are rapidly changing in a digital world, we are investing to ensure that we continue to provide leading service.
'We believe that our members want a combination of human service on the high street, as well as digital convenience. As a building society, we are able to deliver both - continuing to invest in our branches alongside this significant investment in our technology and operational capabilities.
'As part of this overall investment, we anticipate creating an additional technology hub in the UK and employing between 750 and 1,000 people over time.'
The bank's five-year investment plan is aiming for 'sustainable' cost savings, extending its previous target by £200million to reach £500million by 2023.
Nationwide has seen a rise in demand for digital services, with double the number of people logging on to its mobile app compared to two years ago and 200million more log-ins last year.
The app reaches two million active members and more users were counted on there as opposed to its internet banking platform.
However, the group remained firm that bank branches were still a crucial aspect of their business.
It said: 'People will always want the human touch to help with more challenging or complex financial affairs so we remain committed to our branch network.
'We have a simple business model and a single integrated strategy and organisational structure, and our long history of innovation means we are well placed to execute the plan.' 
Low cost portfolios
Low cost portfolios
Cheap funds fee
£1.50 fund dealing
Free fund dealing
Free fund dealing
Master portfolios
Investment ideas
Fees back in trades
Fees back in trades
£22.50 quarterly fee
Good for big pots
Great service
Great service
Free fund dealing
£7.50 share dealing
Model portfolios
Model portfolios
Free fund dealing
Tools and fund ideas
> Compare the best investing platform for you

No comments found