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Customer Snapshot

Growing Market Share with World-Class Personal Financial Services

Largest

building society in the world

 

 

Nationwide wanted to launch a new range of flexible products to help achieve a 10% share of the UK current account market by 2015, so embarked on a five-year core banking transformation program, with the first UK implementation of SAP Transactional Banking applications from the SAP for Banking suite of solutions. Since go-live, Nationwide has already launched two new current bank accounts with more to come, making the Society a serious challenger in the UK financial services market.


Company

Nationwide Building Society

Headquarters

Swindon, United Kingdom

Customer Website

www.nationwide.co.uk

Revenue

£190 billion (Assets)

Number of Employees

17,000

Implementation Partners

Axxiome, IBM

Line of Business

Information Technology

Industry

Banking

Featured Products

SAP Transactional Banking, SAP for Banking

History

165 years of quality financial services

Nationwide’s origins span the second half of the 19th century, and are rooted in the mergers of three British societies. The Provident Union Building Society, established in 1846 in Ramsbury, Wiltshire UK, became the Northampton Town & County Freehold Land Society in 1848. They became the Southern Co-operative Permanent Building Society, London UK in 1884, and now have over 100 mergers behind them—most notably those between Nationwide and Anglia building societies, and between Nationwide and Portman.

 

  • 1987Changed the face of retail banking in 1987 when they introduced their award winning FlexAccount.
  • 1991Launched a Visa Delta debit card.
  • 1995Became one of the first financial organizations to have a site on the Internet, and the first building society to launch PC home banking.
  • 1995The first to introduce a retail internet banking service in the UK.
  • 2001Launched the UK’s first internet banking service available through a television and set top box.
  • 2005 Introduced a Monthly Income account for older people and over 55’s life cover.
  • 2007Merged with Portman Building Society, creating a society with 14 million member, becoming the largest building society in the world, the UK's third largest mortgage lender and second largest savings provider.
  • 2008Mergers with The Derbyshire and The Cheshire Building Societies were successfully completed bringing greater financial security to customers of these societies.
  • 2009Acquired selected assets and liabilities of Dunfermline Building Society. Expanded their savings operation into the Republic of Ireland.
  • 2011Won over 10 major awards from independent organizations for products and services, including: best building society and online lender, best notice account, five star ratings for FlexAccount features, and most responsible credit card lending practices.

Business Model

An emphasis on variety and convenience

Nationwide offer mortgages, current accounts, credit cards, ISAs, and personal loans and has around 15 million members. Customers can avail themselves of Nationwide’s services and manage their finances in branches, on the telephone, via the internet, and post.

Success Strategy

The goal of greater market share

Nationwide set its goal to achieve a 10% share of the UK market for main personal current accounts, while continuing to build on its existing savings base of some 6 million customers. The company’s market share is currently 7%.

The Challenge

The system was in the way

Nationwide wanted to launch a new range of flexible products to help achieve a 10% share of the UK current account market by 2015. However, existing banking systems made this almost impossible.

 

“We had three specific business outcomes that we wanted to achieve – to be the ‘challenger brand,’ based on being market leaders for customer service; to create a strong, diversified and sustainable business with improved agility and capability; and to transform our business to deliver these.”

- Tony Prestedge, Chief Operating Officer, Nationwide Building Society

 

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Aspiring to give the best customer service in the nation

Enter SAP

Introducing a system to support the strategy

SAP Transactional Banking solutions offered integrated, multi-channel banking services that delivered flexible product development and rapid launch with streamlined processes – key issues for Nationwide.

 

The legacy systems at Nationwide were designed with branch banking in mind. Extending them to mobile, tablet, phone, and internet banking turned out to be a practical impossibility. SAP Transactional Banking solutions includes support for the multi-channel operations that are now taken for granted by consumers.

Nationwide wanted the security and commitment of a partner that is committed to the sector and offers a long-term strategy. In software terms, we wanted a real-time platform that we could buy, not build, and that was in production in other banks, all of which led us to SAP.

- Richard Heeley, Program Director, Nationwide Building Society

The SAP Experience

Building the transition team

Nationwide formed a close partnership with IBM Global Business Services to help architect and manage the project, with SAP Consulting Services and Axxiome for consultancy and skilled SAP technical resource.

 

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The SAP experience

“The product runs out of the box. All your job is, is to do the customization to meet your customers needs."

- Richard Heeley, Program Director, Nationwide Building Society

Running Better

On track to ten percent

Nationwide was able to deliver its first new account offering to customers in 25 years thanks to SAP’s core banking platform. Two new product offerings are in customers’ hands since going live, and Nationwide is well on its way to achieving the 10% UK market share goal.

Benefits

Conclusive evidence of a successful transition

New products are in the marketplace, and customers are receiving competitive and flexible pricing, as a direct result of the changeover to SAP Transactional Banking. Nationwide aspires to maintain and strengthen its No. 1 position in customer service in the UK. The SAP banking platform provides the foundation upon which to build toward that goal.

 

 

“Along the way, we estimate that the integrated way of working enabled by the SAP Transactional Banking solutions has taken five to ten minutes off the sales process for current accounts, which approaches 60,000 administrative hours saved in a year’s sales. We have also brought the decision-making upfront in the sales process, making it faster for customers and more intuitive for staff.”

- Richard Heeley, Program Director

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This program will pay for itself

Today

As you read this…

Nationwide has already launched two new current bank accounts and is preparing to roll out more very soon. FlexPlus is Nationwide’s first packaged account, offering benefits such as worldwide travel insurance, mobile phone insurance, UK and EU breakdown assistance, and more.

 

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The 3 key benefits:

- Offering customers new products
- Great pricing and incentives for customers
- Flexibility to meet market demands

Journey Ahead

Product variety and innovation ahead

Nationwide will continue to deliver new and innovative products to their customers, according to Tony Prestedge, the company’s COO, in a recent press release.

 

The new banking platform delivered with our technology partner IBM and technology providers SAP and Axxiome, went live last year and is at the heart of our new FlexDirect and FlexPlus current accounts. The platform enables Nationwide to create more flexible products, providing our members with more choice and helping ensure we bring competition to the current account market. This is just the start of a series of planned developments to make us a more agile, innovative and responsive financial services provider.

- Tony Prestedge, COO

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