Nationwide phases out paper passbooks – worrying for older customers or not?
Nationwide Building Society is due to eliminate passbooks in their current form starting February 2025. This move is said to be part of a broader initiative to modernise its services.
Current Status of Passbooks
- New Accounts: Nationwide has already stopped offering new passbook accounts.
- Usage: Only 2% of Nationwide’s 16 million customers, roughly 120,000 members, currently use passbooks.
What are Passbook Savings Accounts?
- Traditional Format: These accounts come with a physical notebook for recording deposits and withdrawals.
Modernisation Process
- Timeline: The modernisation of passbooks will occur over a seven-month period, concluding in February 2025.
- New ‘Savings Wallet’:
- Contents: Customers opting to continue using a passbook will receive a ‘savings wallet’ with a Nationwide card, usable only in Nationwide branches.
- Mini-Statements: The wallet will include space for printed mini-statements, provided during transactions at branches, replacing the traditional book format.
Key Dates and Changes
- End of Current Passbooks: From February 2025, existing passbooks will no longer be usable in their current form.
- Account Continuity: Accounts will remain open, and customers can continue using them without the old passbooks.
- Customer Notification: Nationwide will inform customers about the transition starting at the end of July 2024.
Support and Transition Assistance
- Branch Support: Temporary staff will be hired to assist with the transition, similar to support provided during busy periods like ISA season.
- Focus on Vulnerable Customers: Special attention will be given to older and vulnerable customers, ensuring they receive adequate support throughout the change.
Public Reaction and Industry Trends
- Mixed Reactions: Public responses vary from outrage on behalf of older and vulnerable customers and cynicism about underlying motives to support for necessary modernisation.
- Industry Movement: Nationwide is not alone in phasing out passbooks; several other banks are also moving away from this format.
Nationwide’s Commitment to its Branch Network
Nationwide says: ‘As the UK’s largest building society, we know the importance of offering products and services that serve the needs of our customers. Creating a modern version of our passbooks and making them fit for the future is part of this. And of course, we remain committed to branches. We have promised that everywhere we have a branch, we will still be there until at least the start of 2028.’
This article has been written with the help of ChatGTP.
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