High street banking in the UK has changed big time over the last ten years. Smaller banks – like Virgin Money – have changed hands and the rise of digital finance has seen the likes of Barclays, NatWest, Lloyds and HSBC disappear from high streets.
And now, another UK bank is undergoing a massive switch-up. The Coventry Building Society has confirmed that it’s buying the Co-operative Bank in a huge £780m deal.
The deal will combine the two financial institutions to bring their assets up to £89bn. It will see the Co-op Bank return to a mutual structure which is when a bank is owned by individual members rather than shareholders and investors (which is how most UK banks are run).
For now, you won’t notice much change on the high street. The deal is expected to be finalised in early 2025 and the new owner will keep the Co-op brand name through the initial integration period (likely to be ‘several years’). But it hasn't ruled out dropping the name once that period is over, and it’s hoped that current Co-op customers will eventually transition into CBS members.
The Co-op is known for its customer-led ethical policies but CBS hasn’t confirmed whether it will stick to those ethical promises. That said, the building society did earn itself a B Corp certification last year, which means it has committed to ethical practices with staff, the community, customers and the environment.
Steve Hughes, the big boss at Coventry Building Society, said that the deal means it ‘will be able to deliver more value to more people in the coming years’.
The chief exec at Co-op Bank, Nick Slape, added that it's a ‘natural next step and presents an exciting opportunity’.
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