Following the news that Nationwide Building Society has agreed to buy Virgin Money UK for £2.9 billion, Phoebe Hodgson, Banking and Payments Analyst at GlobalData, offers her view:
“Nationwide’s preliminary deal to acquire Virgin Money will see the building society take on an extremely loyal and satisfied customer base. GlobalData’s Financial Services Consumer Survey shows Virgin Money’s unusually high loyalty rate, with 94% of customers unlikely to switch providers. Furthermore, 90% say they are satisfied with Virgin Money’s brand.
“This indicates Nationwide is at risk of losing customers if they rebrand too quickly and disrupt customer satisfaction. Nationwide has stated it intends to integrate both banks and retire the Virgin Money brand within the next six years. While planning to do so, Nationwide should focus on providing the most competitive rates and enhanced digital services to ensure Virgin Money’s strengths are not diminished.”
