Nationwide is not "under" a bank; instead, it operates as Nationwide Building Society, a distinct type of financial institution that is a mutual organisation. This means it is owned by its members rather than by external shareholders or a parent company.
Understanding Nationwide's Unique Structure
Unlike traditional banks, which are typically public limited companies owned by shareholders, Nationwide operates under a different model, prioritizing the interests of its members.
- Building Society: A building society is a financial institution that offers a range of banking and financial services, similar to a bank. However, their historical and primary focus is on providing mortgages and savings accounts, often with a community-oriented approach.
- Mutual Organisation: This is Nationwide's key distinguishing feature. As a mutual, Nationwide does not have external shareholders. Its members—individuals who save with it or borrow from it—collectively own the society. Profits generated are typically reinvested back into the business to benefit these members through improved services, more competitive rates, or lower fees, rather than being distributed as dividends to shareholders.
Key Facts About Nationwide Building Society
Here's a summary of key information about Nationwide:
| Feature | Description |
|---|---|
| Company Type | Building Society (Mutual) |
| Ownership Structure | Member-owned; it operates independently and is not "under" a larger bank or corporate entity. |
| Number of Employees | 17,686 (as of 2022) |
| Subsidiaries | While Nationwide itself is not a subsidiary of a bank, it does own other entities. For example, it lists Virgin Money UK among its subsidiaries, meaning Nationwide is the parent company to Virgin Money UK, not the other way around. |
| Website | nationwide.co.uk |
Differentiation from Banks
The fundamental difference between Nationwide Building Society and a traditional bank lies in their governance and ultimate purpose. While banks often focus on maximizing shareholder value, Nationwide, as a mutual, is legally obligated to operate for the direct benefit of its members. This member-centric approach can lead to competitive offerings on savings and mortgages and a strong emphasis on customer service and community engagement.
For more detailed information, you can refer to the Nationwide Building Society Wikipedia page.
