Norwich and Peterborough brand to disappear

Norwich and Peterborough branchImage copyright
YBS

Current accounts with the Norwich and Peterborough building society will be closed, the brand abolished, and some branches closed, it has been announced.

Owners Yorkshire Building Society (YBS) – the UK’s second largest mutual – said it would close 28 NP branches and 20 YBS branches this year.

Customers of the NP will be contacted to be told their options when accounts close over the course of the year.

A total of 440 jobs are at risk as a result of the overhaul.

The announcement comes a year after YBS embarked on a separate rebranding and branch closure programme, in which NP was unaffected.

On Tuesday, HSBC said it was closing an additional 62 branches this year owing to the growth of mobile and internet banking.

Digital shift

Image copyright
YBS GROUP

YBS was involved in several mergers in the building society industry following the financial crisis of 2008 and 2009 and the NP was merged with the YBS group in 2011.

The NP’s finances had been damaged by a huge £51m compensation bill, after the society was found to have mis-sold high-risk investment polices to 3,300 of its customers on behalf of the now defunct investment firm Keydata.

The YBS group itself had previously merged with the Barnsley building society in 2008 and the Chelsea building society in 2010.

The Barnsley and the Chelsea were rebranded under the YBS name last year and now the same will happen to the NP.

Despite the NP website saying that “our commitment to you continues once you’ve opened your account”, the current accounts provided by NP will close.

“We continually review all areas of the business to ensure we remain focused on what our members require while utilising their money as effectively as possible,” said Mike Regnier, chief executive of YBS.

“The driving forces behind the proposed branch closures are shifts in market conditions and an increasing desire among customers to transact digitally rather than on the High Street.

“We therefore no longer believe it is the right commercial position for us to continue to maintain these 48 branches across the NP and Yorkshire network.”

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