Norwich and Peterborough Building Society
Norwich and Peterborough Building Society, previously the thirteenth biggest building society in Britain, has become the eleventh biggest following the takeovers of Derbyshire and Cheshire Building Societies by Nationwide. This merger has seen a shift in the competitive structure of the mutual funds market in Britain, seeing Nationwide’s position asserting a new dominance. This has left smaller Societies such as N&P to diversify and specialise in niche areas while focusing on brand image, taking on the traditional responsibilities in the community expected from a mutually owned society.
This approach has enabled the society to survive during the recession, while its counterparts fell on their own subprime swords. They have managed to improve their relative market position by diversifying away from the mortgage industry and focusing on less volatile industries such as that for insurance, now offering more home insurance quotes than ever before and also sectors which can even see a boost in sales during a recession such as the market for cash isas, which are a safe investment when stock markets are playing up. This is a rare example in the financial sector of prudent and ethical behaviour reaping dividends. Also the relative sanctuary the building societies offered during this financial crisis is an indication of the merits of a mutual trust. This is particularly notable when compared against the list of demutualised societies; Bradford and Bingley, Halifax and of course leading the way, the most notorious of all, Northern Rock. Taking the PLC route was a regrettable decision for all still involved when the subprime summer of ’07 hit, hopefully the remaining building societies can take a leaf from N&P’s book, protecting us from greed and negligence which demutualisation has bred.
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