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Nottingham and Shepshed building societies agree merger

Nottingham Building Society and Shepshed Building Society have agreed in principle to a merger which is expected to be effective from 1 July.

Subject to the approval of Shepshed members and the FSA, members of Shepshed will have access to the full range of products and services from Nottingham in addition to use of the Nottingham’s 31 branches.

Shepshed’s three branches will remain open for a minimum of three years and, following the integration, existing members of the Nottingham will also be able to use them.

The firms say there will be no compulsory redundancies as a result of the merger and no bonuses will be payable to members of either society.

The enlarged society will be branded Nottingham Building Society.

Nottingham chief executive David Marlow says: “The Shepshed shares many of the same values we do. As member-owned organisations we have a clear and simple purpose. We exist to serve the needs of current and future members, and to support the communities in which we operate. Nottingham has been doing this successfully since 1849 and continues to build on our recent strong results.

“The board of Shepshed believe its members’ interests will be best served by being part of a larger society. We are looking to forward to giving their members access to our full range of products and services.” 

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. I suggest that we reject this unless we get a long term agreement that they will always keep a big branch is Shepshed. Their promise to keep the three branches for three years is not acceptable.

    For the people of Shepshed this is the last Bank / Building Society in the village and we wish to keep it.

    There are a lot of Old age pensioners and young children that have accounts with the Shepshed Building Society and we want to ensure we keep it that way, without having to travel to Loughborough or Coalville to get to a bank.

    We need to try and ensure we get a long term agreement in place, not just for three years.

  2. The key to securing the branch in the village is to make sure that customers use it – and encourage others to become members of the newly merged society and do the same.
    If branches have strong footfall and business activity they are less likely to be included in any closure programme.

  3. @Adrian Lingard

    The probable reason for this merger is that the Shepshed is not in a sustainable long-term position.

    Smaller societies have struggled over the last few years – the current low rate environment makes it very difficult for them to sustain business.

    Without the merger, it’s not unreasonable to predict the likes of the Shepshed disappearing anyway.

    The correct approach would be to vote ‘for’ the merger to get some continuity, but as Anonymous said, make sure the branch gets used.

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