Product developments

We launched a number of product initiatives that included higher savings rates and outstanding long-term mortgage deals. We developed our online offer further, making it even easier to do business with us while at the same time helping to reduce paper use.

Lending responsibly

We take a prudent approach to lending decisions, and credit acceptance criteria were tightened during the year. Approximately three out of every five unsecured personal loan applications are declined, with over three-quarters of new loans being to existing members or customers. The rate of arrears on personal loans is 25% better than our peer group average and the rate of arrears on credit cards is 30% better. In a highly competitive market in which rate movements and house price inflation put further pressure on affordability, the number of Nationwide mortgages three months or more in arrears has also remained significantly lower (at 0.24%) than the industry average (0.87%).

Reducing environmental impacts

FlexAccount, Credit Card or card based savings account holders can opt out of receiving paper statements. Since this option was introduced in 2005, 440,000 accounts or approximately 10% of total eligible accounts (as at July 2007) have chosen paperless statements. This has reduced the amount of paper used and distributed by Nationwide in the administration of these accounts. In addition, 90% of the materials used in our marketing literature are recycled, including all direct mail. Read more about environmental impacts. 

Ethical investment product

Nationwide plans to offer an ethical investment product and further announcements will be made following the conclusion of our strategic distribution agreement with Legal & General. We continue to conduct research into attitudes towards 'green' investment products and a range of other sustainability issues and take these into account in our product developments.