Online Talkback Transcript - 9 June 2009

Here you can read a transcript of our latest members’ Online TalkBack event, held between 6.30 and 7.30pm on 9 June 2009. This was our first Online TalkBack for customers of the Derbyshire and Cheshire building societies and the Dunfermline. The event was hosted by Tony Prestedge, Nationwide Group Development Director and Rudolf Heaf, Head of Sales & Marketing for Derbyshire and Cheshire building societies and the Dunfermline.

Tony says: Good evening and welcome to the first Online TalkBack for customers of the Derbyshire and Cheshire building societies and the Dunfermline. These events are a fantastic opportunity for us to hear your views. We'll answer your questions and get through as many as possible in the hour. There’s been a slight change to our event in that with me this evening is Rudolf Heaf – Head of Sales & Marketing for Derbyshire and Cheshire building societies and the Dunfermline. Now, let’s have your questions please.

Mark Williams (Cheshire): Is there any chance of a loyalty account for long term members being offered in the future?

Rudolf replies: Thanks for your question. We continually review the Cheshire's savings product range to ensure the rates and products available meet customer needs. From time to time products have been launched to reward customer loyalty, for example, the Member's Privilege Regular Saver account which is still on sale with the possibility of further loyalty products being launched in the future.

Ben Kewl (Dunfermline): Why is the AGM not held in the north of England so it has easy access for all customers to get to?

Tony replies: The Nationwide AGM, to which all qualifying Dunfermline Building Society customers will be invited to during June, has been a fixture on the calendar for many years and it is not an easy task to change the location of this event.

Nationwide is committed to listening to members and has held almost one hundred regular TalkBack events around the UK, since 1997. These informal 'Question Time' style events give you a chance to have your say and put your questions to a Nationwide director.

We have now added further opportunities for comments and dialogue with online events like this one. We feel this is a good way to stay in touch with our customers across the country as no travel is necessary to attend.

Dunfermline Building Society will be continuing with the theme of these TalkBack sessions and we hope to hold local Member TalkBack sessions in various locations in the very near future.

All qualifying Dunfermline Building Society customers, as members of Nationwide, will be sent a Nationwide AGM pack and will be eligible to vote in Nationwide’s AGM. If you already qualify as a voting member with Nationwide Building Society you will only have one vote. Nationwide’s AGM takes place in July each year and the 2009 AGM is being held on Thursday 16 July at 11am at Birmingham International Convention Centre.

Simon Bishop (Cheshire): Now that Nationwide has taken over will Cheshire be offering online banking soon?

Rudolf replies: We are currently looking at ways to improve our online services at the Cheshire, in particular for savings. Although we have no current plans to offer Online Banking at the Cheshire, we are exploring the possibility of launching an e-savings account and we will be working closely with Nationwide to identify any future opportunities in this area.

Keith (Derbyshire): What does Nationwide do for the Derbyshire to make it any better? I have noticed no difference since the merger?

Tony replies: In this difficult economic environment, Derbyshire customers now benefit from the security of being part of Nationwide, an organisation which is backed by almost 15 million members, assets of £202.4bn and retail deposits of £128.2bn. Customers also benefit from Nationwide’s straight-forward approach to providing financial services, which aims to offer a broad range of great value mortgages, savings and other financial products, while charging as little as possible for day-to-day services. At the same time, Nationwide is committed to running the Derbyshire as a separate brand, to ensure it retains its individual identity.

We take pride in doing our best for our members and championing the rights of all consumers. We have more than 160 years of expertise and experience at being a building society, looking after the interests of our members. And we intend to deliver great value to our members as a modern, mutual building society for many years to come.

Steve Irons (Dunfermline): I wanted to say thanks to Nationwide for rescuing Dunfermline, hopefully this is the end of the bad management that has resided at Caledonia House?

Tony replies: Thanks for the feedback. The former board of Dunfermline Building Society stood down on 30 March 2009 when Nationwide acquired key parts of the business.

Nationwide recognises the importance of the Dunfermline brand in Scotland and we remain wholeheartedly committed to keeping the Dunfermline name. The core of the business was and is still very strong and Nationwide is as committed to customer service as before.

Mrs Pam Connelly (Cheshire): Why does the Derbyshire offer better saving rates than the Cheshire – it feels as though we are being punished for not being as big as them?

Rudolf replies: There are a variety of different products on the high street, offering different rates at different times. We are committed to offering products across the regional building societies for our different customers. Our customers are at the core of our business and we develop our products according to their needs. We are proud to provide excellent service and customer experience across all brands.

We will continue to offer different products with different pricing between the regional brands of Dunfermline, Derbyshire and Cheshire and between the regional brands and Nationwide

Whilst fixed rate bond pricing for the Cheshire Building Society has not been as competitive as that of the Derbyshire in the previous few months, there are products within the Cheshire range that have been more competitive, for example, Cheshire have offered a competitive 1 year fixed rate ISA at 3.00%.

Simon (Derbyshire): I have read on your website that we have key sporting relationships with Derby County Football Club and our other football affinity relationships Grimsby Town, Mansfield Town and Sheffield Wednesday will you be continuing this and how do I get tickets for the games?

Tony replies: Thanks for your question. The Derbyshire is proud to support the communities it serves and we offer support to a wide range of local causes, including affinity relationships with a number of football clubs such as Mansfield Town, Grimsby Town, Chesterfield, Sheffield Wednesday and Derby County.

Although the incentives that we offer with some of these accounts include free match tickets when you open an account, we have no other agreements in place with these clubs which would enable us to offer free tickets to customers.

As with any business, our arrangements with other partners are reviewed as and when appropriate, although we have no plans at present to end any of our football affinity relationships.

Katrina Williams (Dunfermline): I’ve noticed recently every time I go into the local branch that they now are always trying to sell me something, is this the Nationwide effect, I left them years ago and am sad to say I think I will have to again as I don’t want to be just another customer!

Rudolf replies: Dunfermline Building Society prides itself on its high level of customer service, as does Nationwide, which means offering products as a way of giving you, the customer, a financial choice.

Dunfermline Building Society has always tried to help customers to improve their finances with regular checks to make sure that customers have the right savings account or mortgage for their needs. We have several case studies where branch employees have saved customers a great deal of money through these reviews. We hope that offering you additional information on products will allow us to understand your personal needs.

Adrian (Derbyshire): Has the society any plans to introduce Loyalty accounts?

Rudolf replies: We continually review the savings product range available to ensure the rates and products meet customer needs. Derbyshire currently offer a range of loyalty ISA products and the possibility for further loyalty products remains under consideration.

Adam Foster (Derbyshire): What is the Derbyshire doing for the environment? The head office always seems to create a lot of traffic!

Tony replies: The number of employees working at our head office at Duffield Hall can lead to increased levels of traffic at peak times. In order to alleviate congestion in the local community of Duffield, a decision was made to relocate a number of teams and departments, including marketing, retail management and support and Derbyshire IFS, to offices in Little Eaton. In addition, we have a number of initiatives in place to encourage green travel, including an employee car share scheme and facilities to enable more people to travel to work by bike.

Cameron (Dunfermline): The Dunfermline does a lot of good work in the community work within Scotland, will this continue under Nationwide’s leadership?

Rudolf replies: Thank you for your question. Nationwide is committed to supporting the communities where its members live and work and will therefore retain Dunfermline Building Society’s strong connections with the communities which it serves.

Christine Kinloch (Dunfermline): Please may I have an explanation from the Board on why from last November both my disability and retirement pension are not available on the day and date they should be on the ATM system, access is available in the branch but this is not always acceptable.

Rudolf replies: As your question relates to a personal transaction we prefer to speak directly to you on this. Please provide your contact details via the Dunfermline website using the "contact us" facility at the bottom of the page and we will respond in due course.

Ann (Cheshire): I have a bond with you which is going to mature soon, what do I do and how do I know what options I have?

Rudolf replies: When a bond is approaching maturity, Cheshire customers receive a letter shortly before maturity explaining the options they have i.e. to re-invest in another fixed term product that is offered and have the option to fill in a form and post it back. If they want to talk through options with someone then they can visit a branch and have an appointment with a Financial Consultant or can call the local Customer Contact Centre in Macclesfield on 0845 755 0555.

John smith (Derbyshire): There are recent press reports suggesting that the West Bromwich will shortly be forced to merge with another mutual. Given the Nationwide's number one status can it realistically continue rescuing Society's that cannot manage themselves.

Tony replies: Clearly we cannot comment on the financial strength of individual firms within the sector. Overall the sector is well capitalised and strongly retail funded and very well placed to cope with the current recessionary pressures.

Adrian (Derbyshire): Why do the interest rates differ between similar accounts within the Nationwide Group?

Rudolf replies: The Derbyshire, Cheshire and Dunfermline Building Societies will continue to trade as separate brands, dedicated to serving their local customers and communities. This means it is very likely that savings and mortgage products and rates will differ between Nationwide, Derbyshire, Cheshire and Dunfermline in the future, in order to meet each brand's differing customer requirements.

John Beath (Dunfermline): Reuters reported this morning that KeyData has gone into administration. As a Dunfermline customer I was advised a couple of years ago to invest in a Capital and Growth Bond with KeyData as the manager. In view of the reported insolvency of KeyData, what guarantee can you provide about my investment in that bond?

Tony replies: Please rest assured that all monies invested in Guaranteed Equity products sold through Portman, Lambeth, Cheshire, Derbyshire and Dunfermline Building Societies and administered by KeyData are safe. Customers of these accounts do not need to take any action and these accounts will continue to operate until maturity. All terms and conditions will apply.

KeyData do not hold any customer money – they administer the accounts on behalf of Credit Suisse and it is Credit Suisse, a well capitalised organisation, that holds the funds. Credit Suisse are currently in discussions with PWC – the appointed administrators – on how these accounts will be administered in the future.

Richard (Cheshire): Once the recession is over will you put Dunfermline, Cheshire and Derbyshire back into the building society sector on their own again. It seems a bit monopolistic you taking over all the competition. Without competitors savers are getting terrible rates from the building societies. Halifax plc is paying decent rates

Tony replies: No. Dunfermline, Cheshire and Derbyshire are now part of the Nationwide and will remain so. Cheshire and Derbyshire had insufficient capital to continue to trade independently and that position will remain after the economy recovers. Dunfermline was not a merger we purchased selected assets and liabilities after the business had been placed into Temporary Public Ownership and as such the business of Dunfermline no longer exists as an independent business. When we acquired key parts of the Dunfermline, we invited customers of those parts of the business to benefit from Nationwide membership as part of our desire to maintain stability within the sector

Alan Hart (Cheshire): Will you be extending your branch opening times on a Saturday? I work through the week and can only bank at weekends, the branches are always busy 9-12, why can’t they be open to 5? (The rest of the high street is!)

Rudolf replies: Thank you for raising this Alan, we continually strive to offer services to meet the needs of customers, whilst balancing it with what is commercially viable. Where demand is high we will review opening hours to serve the community. Macclesfield for example opens until 4pm in the city centre as the customer demand can warrant it.

Keith (Derbyshire): Why when Nationwide owns Derbyshire can I not get money out from my local branch? The Nationwide is closer to where I live and I think this is the case for quite a few members? Surely all access would work better than acting as sole providers?

Rudolf replies: Thanks for your question. Nationwide intends to run the Derbyshire, Cheshire and Dunfermline as separate brands and needs all the mechanics in place to support them. The different brands all serve, and will continue to serve, different sets of customers. As such, these branches are managed separately from Nationwide’s branch network and will continue to offer distinct product and services which customers have been used to.

James Drummond (Dunfermline): With the merger of Dunfermline and Nationwide I now have accounts with both. Does the £50k guarantee apply to both accounts. (ie.£100k )or do I have a £50k ceiling total, therefore requiring me to disperse funds elsewhere?

Rudolf replies: If prior to 30 March 2009 you held savings accounts with both Dunfermline Building Society and Nationwide Building Society you will retain protection for up to £50,000 in each society, and up to £100,000 for joint accounts. This protection will apply until 30 September 2009.

The FSA has put forward a proposal that is great news for savers. These interim rules which allow separate compensation cover for customers with deposits in two merging building societies are likely to be extended until 31 December 2010.

GH (Cheshire): Will Nationwide be rescuing any other Building Societies?

Tony replies: The sector remains robust and is both well capitalised and retail funded. We will only ever consider transactions if we are confident they are in the interests of Nationwide members.

Ian (Derbyshire): If the Derbyshire starts doing well again, does this mean that Nationwide would consider giving it independence again?

Tony replies: See my answer from earlier this evening in respect of the same question.

Don Porter (Dunfermline): Can you please keep the Dunfermline jobs in Scotland! We are a Scottish institution and if this is to change I will be taking my money elsewhere!

Rudolf replies: When Dunfermline Building Society became part of the Nationwide on 30 March we immediately let Dunfermline’s employees know that there would be no compulsory redundancies in the Dunfermline branch network for a minimum of three years, and that commitment still stands. In addition our telephone customer support will still be provided locally.

This is a big commitment especially given the world economy is still very unpredictable. Like any business, Nationwide will continually review the business needs to provide the best possible service and returns for our customers. As a result jobs may be created in some areas in the business while there may be a need for fewer people in other business areas.Please rest assured that Nationwide will do everything it can to keep jobs in Scotland.

Tony and Rudolf say: Thanks to everyone who has contributed to a stimulating and insightful session. Enjoy the remainder of your evening.

Tony and Rudolf