The UK’s largest building society has said it expects to create up to 1,000 jobs in a new “technology hub” as part of plans that now total £4.1bn over the next five years.
The group said the move will help “simplify its technology estate and build new technology platforms to enable growth and diversification, and drive forward digital, data and analytic strategies”.
The additional investment is expected to see Nationwide take a profits hit of up to £250m in the current financial year, with that cost repeated over the next five years.
Nationwide Building Society chief executive Joe Garner said Nationwide is in a position of “financial strength” and that its capital levels are at an all-time high.
He said: “At a time when customer expectations of service are rapidly changing in a digital world, we are investing to ensure that we continue to provide leading service.
“We believe that our members want a combination of human service on the high street, as well as digital convenience.
“As a building society, we are able to deliver both – continuing to invest in our branches alongside this significant investment in our technology and operational capabilities.
“As part of this overall investment, we anticipate creating an additional technology hub in the UK and employing between 750 and 1,000 people over time.”
The building society said demand for digital services is on the increase, with 200m more mobile app log-ins last year and two million active members on the app.
“At the same time, people will always want the human touch to help with more challenging or complex financial affairs so we remain committed to our branch network,” Nationwide said.
“We have a simple business model and a single integrated strategy and organisational structure, and our long history of innovation means we are well placed to execute the plan.”