Historic mutuals scrapped with loss of 500 jobs

Up to half of 91 branches of the Cheshire, Derbyshire and Dunfermline mutuals are to be shut as a result of the programme, and their names, dating back more than 100 years, will be ditched.

Nationwide, the UK’s largest building society, took over the Cheshire and the Derbyshire in 2008, followed by the Dunfermline in 2009, though it maintained them as separate brands.

The Dunfermline was established in 1869, with the Cheshire founded a year later and the Derbyshire building society in 1859. Together they serve around one million customers.

But by the middle of 2015 the names will have disappeared under the plans announced by Nationwide, which said it expected “a reduction of around 500 roles nationally as a result of this integration”, though employees would be redeployed where possible.

It said it would convert around half of the 91 Cheshire, Derbyshire and Dunfermline branches into Nationwide branches.

“Depending on levels of usage or proximity, the remainder of the branches in the network will either be closed or integrated into the nearest alternative Nationwide branch,” it added.

Nationwide said it was part of a wider plan to boost access to products and customer services for its 15 million members. Customers of the affected building societies would have increased access to cash machines as well as internet and mobile banking facilities, it added.

Nationwide said all three had been experiencing “a period of financial distress” before it took them over and since then it had maintained them as “traditional building society brands”.

Chief operating officer Tony Prestedge said the latest move was a “logical step to integrate our businesses under one unified, strong and nationally recognisable brand”.

He added: “The integration of the branches into the Nationwide brand will result in significant efficiencies for the business.”

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