Nationwide Building Society will axe its current iteration of passbooks, a physical paper document used by customers to monitor bank transactions, from tomorrow (February 6).
Last year, the country’s biggest building society confirmed plans to scrap physical passbooks in lieu of a new Savings Wallet as part of its commitment to “modernise” its services.
According to Nationwide, the financial institution’s customers will still be able to manage their existing accounts in branches without having to use an old-fashioned passbook.
Anyone who wants to keep a physical record of transactions will be able to use new branch-based accounts, which come with a Saving Wallet, and customers are able to switch to.
Notably, Nationwide Building Society claims that less than two per cent of its 16 million members, use the physical notebooks which contributed to the group’s decision-making.
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Nationwide Building Society is scrapping its physical passbooks
GETTY / NATIONWIDE
Concerns have been raised over physical passbooks being phased out as many older customers are reliant on this form of banking to keep up-to-date with transactions.
Among the high street banks in the UK that have either committed to or have implemented scrapping physical passbooks include Virgin Money, Barclays and Santander.
However, research conducted by Yorkshire Building Society last year found that over half a million of the financial institution’s members used passbooks on a regular basis.
A survey commissioned by the building society revealed that 16 per cent of people still hold a passbook, with that figure increasing to over a quarter (27 per cent) of those aged 18 to 34.
Yorkshire Building Society’s research found that passbooks remain popular with many of its members
YORKSHIRE BUILDING SOCIETY
A Nationwide Building Society spokesman told GB News: “We are modernising passbooks rather than removing them, but while they are changing, banking in branch isn’t.
“We are maintaining the benefits our passbook customers value most – face-to-face service and having a physical record of transactions. As the UK’s largest buildingsociety, we are investing in our systems so we can offer the products and services our customers expect from a modern mutual.”
On the building society’s website, Nationwide broke down the options available to customers who are likely to be impacted by the overhaul to the physical passbook regime.
The first option is for members to keep their existing savings account and, while banking in branch, be asked security questions to prove their identity, as well as showing ID.
Customers are able to prove their identity using the Nationwide banking app, a debit card, a valid full UK photocard driving licence, a valid full UK or EEA passport or by using an EEA national identity (ID) card.
The second option for members is applying for one of Nationwide’s alternative savings accounts or ISAs with a card and Saving Wallet, but customers will need to visit a branch to complete this task.
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Finally, those who do not use a passbook but are ready to change their banking habits are encouraged to open a new savings account without getting a wallet or card.
“It is vital that the systems and platforms all our accounts operate on are up to date, efficient and robust. While there are many benefits from our new technology, we cannot offer passbooks in the same way,” Nationwide shared on its website.
“We know you value having a physical record of your transactions and face-to-face service. That is why you can still manage your account in branch. And why we are offering a new wallet and card to replace your passbook.
“You cannot use your passbook. However, you can keep it for your records. We cannot accept your passbook as ID in branch and you do not need to return it to one of our branches.”
