Coventry Building Society and The Co-operative Bank

Coventry Building Society has reached an agreement of key terms with the owners of The Co-operative Bank to buy the Bank subject to agreeing the contract and gaining approval from the financial services regulators.

Listening to members

We want to understand member views of such an important step, and we’ve been listening to hundreds of members across the country via surveys and focus groups.

The first question is often: if this goes ahead, will it change the products and services you’re using now? It won’t. Your savings and mortgage accounts will stay the same and you’ll continue to have the friendly, expert Coventry service you value so much.

Ultimately, the Board has decided to pursue this deal to create a stronger Coventry Building Society to help sustain the value and service you expect from us for the benefit of current and future members.

Delivering for members

A stronger mutual building society, that will carry on delivering competitive savings and mortgages, and keeping your money safe.
More investment in delivering an outstanding service in our branches, and online, telephone and mobile services.
A larger UK branch network providing choice, access, and reassurance to more people.
A broader set of products and services, like current accounts, to meet more of your needs.
The creation of a larger, values-driven organisation centred on meeting the needs of members and customers, and making a positive impact on wider society.

The Co-operative Bank – the right fit

We’ve spent a lot of time evaluating this opportunity and believe it’s the right thing to do. The Co-operative Bank is a financially stable, profitable organisation with a shared heritage and products and services that complement our own.

We may be three times bigger, but the Bank’s customers, colleagues, branches, mortgages and savings balances, and the additional products and services it provides such as its business proposition, will make us stronger and able to keep offering the value and service that matters to you. We’re confident that we have the people, capability, and the financial strength to achieve this.

What happens next

There is a lot still to do and no guarantee that the deal will happen. Our next step is to agree the contractual terms and gain regulatory approval.

It’s really important to us that we keep you informed. We’ll keep our website updated and you can find more information, including the formal regulatory announcement, here now.

This is an exciting moment for the Society. We have a very successful history, and we believe this could be the basis of a very successful future – with membership, great value and great service at its heart.

Stephen Hughes

Chief Executive

Coventry Building Society

Give your feedback

More Information on the potential deal with The Co-operative Bank.

Are you buying The Co-operative Bank?

We have agreed key commercial terms with the owners of The Co-operative Bank. We now need to complete the contractual requirements and gain the approval of our UK financial services regulators before the purchase can go ahead. If these things happen, then we will become the new owners of The Co-operative Bank.

What are key commercial terms?

These are important parts of a final contract, including price. Agreeing these mean we can move on and negotiate all the remaining details. So, it’s an important milestone but there’s more work to do, and this is why we can’t say that a deal will definitely happen at this point.

When will this happen?

These things can take time, so we’ll provide an update when we’re able to.

Why are you buying The Co-operative Bank?

The Coventry Building Society Board believes that buying The Co-operative Bank will make the Society stronger. We’ll gain additional customers, mortgage and savings balances, a wider set of products and services, including current accounts and its business proposition, as well as a more nationally representative branch network. We believe this will help us sustain the outstanding service and value you expect from us today well into the future.

Will members be asked to vote on the potential acquisition?

The Coventry Building Society Board has considered carefully whether a member vote is required. Having had regard to the requirements of the Building Societies Act 1986, and having taken professional advice, the Board has determined that, if the potential transaction were to proceed, a member vote is not required. In coming to this decision, the Board has also been informed by member surveys and focus groups which clearly signalled their priorities as maintaining our value proposition and service quality.

What will be the impact on me?

You’ll continue to experience the same great value and service you have today. Your savings or mortgage accounts stay the same, and you’ll continue to use all our existing services – branches, telephony, online and our new mobile app – as normal.

If we do take ownership of The Co-operative Bank, we’ll begin the ‘behind the scenes’ work that means we can provide one joined up service in the future. We expect this work to take several years, and as we complete it, we’ll be able to provide additional products, for example a current account, and access to additional services.

Will you still be a mutual building society?

Yes, we’ll still be a building society. If the deal is completed, The Co-operative Bank will become a subsidiary of the Society and return to mutual ownership. Over time we want its customers to become members of the Society.

What will the new organisation be called?

Coventry Building Society and The Co-operative Bank will continue to operate under their current names and branding while we carry out the work needed to provide a joined-up service. We expect this to take several years.

I am a customer of both The Co-operative Bank and Coventry Building Society, will this mean I lose part of my FSCS cover?

To begin with The Co-operative Bank and Coventry Building Society will retain their banking licences, and you will have Financial Services Compensation Scheme (FSCS) protection as a customer of each organisation as you do now. We expect this to be the case for several years.

Find out more information about the Financial Services Compensation Scheme.

I don’t know much about The Co-operative Bank

The Co-operative Bank was formed in 1872 out of the Co-operative movement which established businesses that were owned and run for the benefit of their members, rather like building societies.

It was sold by The Co-operative Group – which is the group that operates the Co-op shops, Co-op insurance and Co-op funeral care – and is currently owned by US investment companies.

The Co-operative Bank has 3000 colleagues and serves three million customers, providing savings and mortgages, plus current account, insurances, credit cards, loans and business banking. It has 50 branches and has regularly won awards for its ethical practices.

How will you keep me informed of progress?

We’ll keep updating this page on the website and contact you as appropriate.

We really want to hear from you - if you’re thinking it, other members probably are too. You can leave your thoughts and any questions you may have about what we’re doing here. Please carry on using all the usual channels for normal servicing queries.