Nationwide says it is winning the battle against upstart challenger banks

NATIONWIDE building society today said it is fending off the supposed threat from the challenger banks, insisting it is winning market share from the new players rather than losing it.

A host of second-tier banks such as TSB, CYBG and others have made it their mission to attack the big boys. Nationwide is the UK’s second-biggest lender.

Unveiling half-year results that saw profits down by a fifth, chief executive Joe Garner said: “We gain market share from all established players, be they large or small.”

He said new app-only banks such as Monzo are making small inroads, but questioned “to what degree are they building relationships with their customers? How many people moved their whole banking relationship?”

Nationwide membership is 9.1 million, up from 8.9 million a year ago. Its share of market “switchers” increased to 21.5% — one in five of people who moved bank accounts went to the society.

Profits fell 22% to £460 million, largely due to a massive technology investment programme.