Distribution network

Our integrated and diversified distribution network allows our customers to choose how and when to undertake their transactions with us and has enabled us to expand our business while controlling costs. Developments in the network have focused on cost efficiency and meeting the needs of customers who are increasingly prepared to transact business by the Internet, telephone and mail.

The society has a network of 856 branches and agencies in the United Kingdom and the Isle of Man as at 4 April 2009. We believe that our branch network is an integral part of our distribution network.

To allow customers to execute automated transactions, we have installed personal computers in some branches and ATMs in most of our branches.

We offer mail-based savings accounts, which provide members with higher interest rates on their deposits in return for limiting them to transactions by mail, online banking and ATMs.

We continue to develop our e-commerce capabilities as an integral part of our overall strategy. We do not, however, intend to develop a stand-alone Internet bank.

We launched an Internet banking service in 1997 and are one of the market leaders in the United Kingdom. Our website allows customers to transact on their accounts and apply for a broad range of our products online. Strong internet bank sales have been driven primarily by the performance in the personal loans market where the internet channel share has increased to 32%. Internet bank transactions are up 12% year on year and the Online Managed Account Transfer process has proved popular since its launch in April 2009.

We merged with the Derbyshire and the Cheshire building societies in December and acquired selected high quality assets and liabilities of Dunfermline Building Society in March 2009. The transactions have provided an opportunity for Nationwide to deepen its national franchise at a local level. Derbyshire, Cheshire and Dunfermline will all retain their regional identities and operate as three new trading brands for Nationwide.

In addition we opened our first branch in the republic of Ireland. Nationwide UK (Ireland) will not only provide the society with an extra outlet for attracting retail savings but it will also offer the society access for the first time to funding from the European Central Bank should it be required.

For further information please see our company history section.