Technical issues at Nationwide Building Society result in payment delays, impacting customers across the UK amidst its £2.9 billion purchase of Virgin Money.
Nationwide Building Society recently experienced technical issues that caused delays in payments to and from other banks and building societies, leaving customers across the UK facing inconveniences. The problem, attributed to an IT glitch resulting from maintenance works running longer than anticipated, impaired several banking operations, notably affecting the Faster Payments system. Despite the disruptions, Nationwide has resolved the issue, though there is a backlog of payments yet to be cleared.
The issue notably affected customers like Richard Bagnall, who experienced difficulties in transferring money, impacting his mortgage payment schedule. This incident has led to widespread criticism from Nationwide customers, experiencing challenges in completing essential transactions and accessing funds.
In the midst of handling these operational troubles, Nationwide is proceeding with a significant acquisition of Virgin Money for £2.9 billion. This strategic move aims to expand Nationwide’s assets by about a third, establishing it as the second-largest mortgage and savings group in the UK. However, the acquisition has stirred concerns regarding member involvement and the democratic governance of the building society since members won’t have a vote on the decision. This situation has highlighted the potential need for regulatory updates to ensure member interests are adequately represented in significant decisions.
Nationwide has apologized for the inconvenience caused by the payment delays and reassured customers that efforts are underway to process the backlog swiftly. The institution confirmed that, aside from the affected payment system, other services including card usage, direct debits, and standing orders are operational, advising customers against resending payments to prevent duplicates.
As Nationwide addresses the fallout from the IT glitch and moves forward with its acquisition of Virgin Money, customers are advised to stay updated through the building society’s announcements.