Major supermarket bank with 1.8million customers sold to NatWest – what it means for customers
A MAJOR supermarket bank has been sold to NatWest in a move that will affect around 1.8million customers.
The high street bank has agreed to buy the retail banking arm of Sainsbury’s, it has announced.
It comes after Sainsbury’s announced in January it was winding down its banking division to focus on its retail business.
The move will affect more than one million credit card, loan and savings customers.
NatWest said it expects the takeover to be completed in the first half of 2025.
But Sainsbury’s will retain some of its banking activities, including insurance and travel money.
Argos Financial Services is also not included in the deal.
The bank said that there will be “no immediate change” for Sainsbury’s customers and they will be contacted in due course.
This means there is no need for customers to take any action.
Paul Thwaite, NatWest Group chief executive, said: “Following today’s announcement, we look forward to welcoming new customers to NatWest Group, where they will benefit from our expertise and award-winning digital banking offering.
While Simon Roberts, chief executive of Sainsbury’s, said: “Today’s news means we will focus all our time and resources going forward on growing our core retail business, delivering great quality and value, week in week out.”
Sainsbury’s bank offers a range of personal banking and insurance products, including personal loans, credit cards, car insurance and pet insurance.
The deal will see NatWest take on about one million customer accounts, as well as £1.4 billion of unsecured personal loans, £1.1 billion of credit card balances and about £2.6 billion of customer deposits.
Sainsbury’s Bank, founded in 1997, started as a joint venture between J Sainsbury PLC and Bank of Scotland, a subsidiary of Lloyds Banking Group.
The supermarket took full ownership of the business back in 2014.
Banking customers can access services online, over the phone, or through branches located inside Sainsbury’s supermarkets.
How do I switch bank accounts?
SWITCHING bank accounts is a simple process and can usually be done through the Current Account Switch Service (CASS).
Dozens of high street banks and building societies are signed up – there’s a full list on CASS’ website.
Under the switching service, swapping banks should take seven working days.
You don’t have to remember to move direct debits across when moving, as this is done for you.
All you have to do is apply for the new account you want, and the new bank will tell your existing one you’re moving.
There are a few things you can do before switching though, including choosing your switch date and transferring any old bank statements to your new account.
You should get in touch with your existing bank for any old statements.
When switching current accounts, consider what other perks might come with joining a specific bank or building society.
Some banks offer 0% overdrafts up to a certain limit, and others might offer better rates on savings accounts.
And some banks offer free travel or mobile phone insurance with their current accounts – but these accounts might come with a monthly fee.
Last summer Sainsbury’s Bank offloaded its £479million mortgage book to Co-op Bank.
But Sainsbury’s isn’t the only supermarket axing its banking services.
Barclays agreed to buy the retail banking arm of Tesco Bank, including acquiring almost 3,000 staff, back in February.
It followed reports Tesco was reviewing the future of its banking arm and that HSBC had submitted an indicative offer for the business.
Elsewhere, Metro Bank announced it was to axe 800 jobs and review its opening hours in a new cost-cutting drive.
The high street bank is considering cutting its seven-day branch opening hours as it attempts to claw back costs.
It comes after a difficult time for banks in the UK.
Hundreds of branches have closed so far this year as banks look to move away from the high street.
Data from the UK’s largest cash machine network, LINK, keeps track of any planned branch closures across the UK.
Several major lenders have been affected, such as Barclays, Lloyds and the Bank of Scotland.
Customers are increasingly turning to online banking to manage their finances while banks and building societies look for ways to cut costs.
Meanwhile, here is the full list of bank branches closing in 2024 including Lloyds and Barclays.
What the sale of Sainsbury’s Bank could mean for your money
As with other UK banks, customers of Sainsbury’s Bank are protected by the Financial Services Compensation Scheme (FSCS), meaning a maximum of £85,000 per person is protected if the bank goes bust.
A sale will be monitored closely by the banking regulator.
In the short term, it is likely customers wouldn’t notice much change.
When Co-op Bank put itself up for sale in 2017, there was no immediate impact on the products and services.
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