James O'Sullivan’s Post

I’ve occasionally given a #goodread shout out here to Marc Rubinstein and his Net Interest #newsletter. I remember years back engaging on a project shortly after his viewpoints were morphing from an idea into reality.   Net Interest has grown considerably since then.   The potential takeover of Virgin Money by Nationwide Building Society to create the country’s second-largest mortgage lender and savings group, speaks to a shift in the retail bank business landscape.   Below is a link to the teaser of a bigger read from Marc’s latest edition out today: The Last Challenger👇 The other story that caught my eye on this deal was a viewpoint yesterday by author Philip Augar writing in the Financial Times. As for the opening few lines ... “We’re not a . . . bank” says Nationwide’s website. “In that case, why are you considering buying one?” the mutual’s members might ask as the UK’s biggest building society weighs up an agreed offer for the challenger bank Virgin Money. It also leaves a number of banktech commentators wondering if this Virgin Money deal coming just weeks after Tesco Bank agreed to sell the bulk of its banking business to Barclays for £700m may mark a turning point for the country's original challenger retail banks.    #banks #competition #fintech #regulation #savings #mortgages #media

🔔 Big Moves in Banking! 🔔 Exciting news in the financial sector as Nationwide Building Society and Virgin Money have just cleared a major milestone! The boards have approved the terms for a landmark £2.9bn takeover deal, setting the stage for a transformation in high street banking. This move isn't just about numbers; it's about people. With a combined force of 25,000 staff and 700 branches, the deal promises to serve an impressive 24.5 million customers, becoming a powerhouse in the UK banking landscape. Nationwide has committed to embracing Virgin Money's Glasgow office and has extended its 'branch promise' until 2028, ensuring continuity and community presence. But what does this mean for the industry and you? It signifies a robust confidence in the brick-and-mortar banking model, coupled with a forward-thinking approach to digital transformation. It's a signal that the financial services sector is evolving, merging traditional service with modern innovation. As we watch these two giants come together, it's clear that the future of banking and financial services is not just about surviving; it's about thriving through adaptation and innovation. 💡 What's your take on this monumental merger? How do you see it impacting the landscape of banking and financial services? #BankingAndFinance #FinancialServices #MergerNews #Nationwide #VirginMoney #InnovationInBanking

🚨 𝘽𝙍𝙀𝘼𝙆𝙄𝙉𝙂: Nationwide Building Society's proposed takeover of Virgin Money looks set to move ahead as the boards of both lenders have agreed a recently tabled £2.9bn deal. Bosses at Nationwide have been looking over the Virgin's books since the 220p per share offer was first suggested earlier this month, and now the pair have firmed up a preliminary agreement. The move is now expected to be complete later this year, bringing together the country's fifth and sixth largest retail lenders and creating a combined group of 25,000 staff and 700 branches serving 24.5 million customers. More info: https://lnkd.in/ebU2--qA Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ] Anything to add about this subject? [ 𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁 ] Nice story, Marcel. Next! [ 𝗹𝗶𝗸𝗲 ] #banking #bankingindustry #neobank #challengerbank #bankingapp #fintech #fintechnews

Another significant acquisition announcement today, #nationwide agrees terms with #virginmoney. This, on the back of #barclays linked to a deal with #tescobank and #coventrybuildingsociety in talks to merge with #coopbank. There are obvious commercial benefits for organisations and shareholders, but more effort required to better service and retain customers through digital channels and human touch points.

#FunFactFriday The first Old National Bank (as it would later be known) provided financial solutions for community residents, local merchants and those passing through. New loans allowed families to realize their dreams and businesses to grow. Old National grew, too, and soon would successfully navigate the difficult periods that forced many other banks to close, including the Panic of 1837 and the 1929 Wall Street crash that ushered in the Great Depression. Through it all, Old National remained strong. By the end of World War II, the bank’s growth meant it also could expand geographically — a trend that would continue over the years. In Jackson County, the location in Seymour moved from West Second Street to East Tipton Street in 2016. There also was a location in Brownstown until 2015 when it was acquired by MainSource Bank. In June 2021, Old National announced a merger of equals with First Midwest Bank, a Chicago, Illinois-based financial institution. This merger was officially completed in February 2022. This combination with approximately $48 billion in total assets and dual headquarters in Evansville and Chicago provides even greater convenience for clients with expanded access to banking centers. In 2024, Old National completed a partnership with CapStar Bank, increasing to $53 billion in total assets. Today, there are more than 280 banking centers, and Old National is the sixth largest commercial bank headquartered in the Midwest by assets and is a top 30 largest bank in the United States. Source: oldnational.com

Following the merger of Heritage Bank and People's Choice Credit Union, the newly branded People First Bank has released its inaugural first-half financial results for FY2024, revealing an annualised growth rate of 6% (a $550 million increase) in residential loans. To find out more about the results, including comments from People First Bank CEO Peter Lock, read the story here: https://lnkd.in/gWP2C862 #financialresults #bankingindustry #bankingnews #mortgageindustry #homeloans

2 + 2 = 5 Nationwide Building Society has announced a preliminary agreement to take over Virgin Money in a deal valued at over £2.2bn. Shareholders will be hoping that the magic ‘synergies’ can be delivered. The UK’s Big 4 banks (NatWest Group, Barclays, Lloyds Banking Group & HSBC) have not had much external competition. Can the combination of Nationwide and Virgin Money challenge their dominance? Challenger banks such as Starling Bank, Monzo Bank and Revolut have taken some market share, but have struggled to achieve true scale. The combination of two second-tier brands may be able to achieve cost-efficiencies, but to deliver true value the combined group will need to attract significant numbers of new customers. As a UK domestic bank this will need growth in both the retail and commercial segments. The Big 4 have weathered such challenges before. I expect them to do the same again. #banking #manda #mergersandacquisitions #integration

Nationwide Building Society to acquire Virgin Money - Nationwide Building Society has agreed to purchase Virgin Money. The agreement would establish the second-biggest savings and mortgage group in the UK. This is set to be the largest takeover of a UK bank since the 2008 financial crisis would occur if the deal closes. Previously Northern Rock Bank was nationalised as a result of the financial crisis, and Virgin Money later acquired it in 2012. The two companies together would form a group with 696 branches. Clifford Chance and Slaughter and May, two Magic Circle firms, are leading Nationwide's £2.9 billion acquisition of Virgin Money. Following Barclays' announcement last month that it will acquire Tesco's retail banking division for £600 million, analysts predict additional takeovers in this industry are to follow. Source: https://lnkd.in/efXPuMyg #ABTL #uklawyers #lawstudents #aspiringlawyers #commercialawareness

Nationwide Building Society is set to acquire Virgin Money for £2.9Bn, marking a significant expansion into business banking and presenting a strong challenge to the leading high street banks. With 696 branches and a commitment to delivering exceptional value and service, this strategic move positions Nationwide as a key player in the financial landscape. Stay tuned for more updates! 💼 #Nationwide #VirginMoney #BankingRevolution #NationwideExpands #BankingAcquisition #FinancialGrowth #BusinessBanking #ChallengerBank #UKFinance #StrategicMove #NationwideNews #VirginMoneyDeal #FinancialServices #MarketExpansion #BankingIndustry #MergersAndAcquisitions #BuildingSociety #CustomerService

Nationwide acquisition of Virigin Money Interesting piece on this proposed acquisition. The author argues that one can take an optimistic view of this based on this being an example of the mutual business model continuing to flourish, and a negative view based on this being an example of how difficult the mid-tier challenger banks have found it take on the big 4. Putting to one side for a moment the question of economies of scale, for me the heart of the matter here is competitive differentiation, or a lack of it , particularly in the critical battleground of customer experience. If we turn the lens to look at some of the digital-native, mobile-first, start-up banks, we see some strong examples of where they have succeeded in disrupting the industry and setting a new benchmark for effortless customer experiences, earning them an increasing right to a greater share of their customers' wallets. The big 4 are being forced to rise to the challenge here. #mergers and acquisitions in retail banking # nationwide and virgin money # competitive differentiation #effortless customer experiences https://lnkd.in/eYyCHecn.