When it comes to financial institutions in the UK, the Woolwich Building Society is a household name. But what do we really know about this longstanding company and who owns it? In this article, we’ll explore the history of the Woolwich Building Society, how it came to be a part of one of the biggest banks in Britain, and how its ownership has changed over the years.
Originally founded in 1847, the Woolwich Building Society was formed with the aim of providing affordable housing for working-class families. Over the years, the company expanded its services to include savings accounts and personal loans. After over a century of successful growth and expansion, Woolwich was acquired by UK banking giant Barclays in 2000, much to the surprise of its customers and the wider financial industry.
Since then, Woolwich has continued to operate as a subsidiary of Barclays, with its services being offered under the wider Barclays branding. Despite this, the Woolwich brand and legacy remains strong, with many long-time customers still using the company’s services and holding onto their original Woolwich accounts. So, who owns Woolwich Building Society? The answer is Barclays, but the legacy and impact of Woolwich’s humble beginnings can still be felt today.
History of Woolwich Building Society
The Woolwich Building Society was established in Woolwich, southeast London, in 1847, initially as The Woolwich Equitable Benefit Building and Investment Association. The founding members aimed to help local people purchase their own homes by creating a savings scheme in which they could pool their funds. The society quickly grew, and by the end of its first year, it had taken in over £1,000 in deposits.
Over the following years, Woolwich Building Society expanded its services and opened up several branches across London. It became a part of the wider building society movement which had emerged across the UK, each offering secure and reliable savings plans for their members.
- In 1912, Woolwich Building Society moved to its current headquarters at Woolwich Arsenal in southeast London.
- During the early 20th century, the society continued to grow, and by 1939, it had over 100,000 members.
- The society suffered during the Second World War, with large amounts of its headquarters destroyed during enemy bombing raids.
After the war, Woolwich Building Society was one of many institutions that helped to finance the post-war rebuilding effort, providing mortgages to help people rebuild their homes. By the end of the 1950s, the society was one of the UK’s largest building societies, with over 400,000 members.
Throughout the 1970s, ’80s and ’90s, Woolwich Building Society continued to expand its range of financial products. In the early 1990s, it was one of the first building societies to take advantage of changes in UK law, allowing it to become a full bank.
Today, the Woolwich Building Society is part of Barclays Bank, having been acquired by the bank in 2000. Its legacy as a trusted provider of savings and mortgage products continues, albeit under a different name.
Mergers and Acquisitions of Woolwich Building Society
Woolwich Building Society, originally founded in 1847, was the fifth largest building society in the UK before it was acquired by Barclays Bank in 2000. The acquisition was a strategic move by Barclays Bank to expand its retail banking operations and gain access to Woolwich’s prime mortgage book. Despite the acquisition, the Woolwich brand continued to operate under the Barclays umbrella until 2006 when it was fully integrated into the bank.
- In 1997, Woolwich merged with the Greenwich Building Society, which had 5 branches in South East London. The merger gave Woolwich an additional 30,000 members and assets worth £330 million.
- Two years later, in 1999, Woolwich announced that it was seeking a merger partner to help it compete with larger building societies. In the same year, it spurned a merger proposal from mortgage bank Alliance & Leicester.
- Woolwich also acquired West of England Building Society’s mortgage business in 1998, adding another £500 million of assets to its book.
Since the acquisition by Barclays in 2000, the Woolwich brand has continued to evolve under the bank’s ownership. In 2006, Barclays announced that it would phase out the Woolwich brand and replace it with Barclays, effectively ending the Woolwich’s 159-year history. The decision was made to simplify the bank’s brand and create a consistent customer experience across all its products. All Woolwich branches were rebranded as Barclays, and Woolwich’s online mortgage service was integrated into the bank’s existing mortgage offering.
Below is a table summarizing the key events in Woolwich Building Society’s mergers and acquisitions:
| Date | Event |
|---|---|
| 1997 | Merger with Greenwich Building Society |
| 1998 | Acquisition of West of England Building Society’s mortgage business |
| 2000 | Acquisition by Barclays Bank |
| 2006 | Phasing out of Woolwich brand and integration into Barclays Bank |
In conclusion, Woolwich Building Society had a long and storied history before its acquisition by Barclays Bank in 2000. Through a series of mergers and acquisitions, it grew its membership, assets, and market share, and remained a popular choice for mortgage customers. Although the Woolwich brand is no longer in use, its legacy lives on through the Barclays mortgage offering.
The Acquisition of Woolwich Building Society by Barclays Bank
In July 2000, Barclays Bank made headlines when they announced their acquisition of Woolwich Building Society, one of the largest building societies in the UK. The acquisition was valued at £5.3 billion and would significantly increase Barclays’ position in the UK mortgage market.
The acquisition of Woolwich Building Society was part of a larger trend in the UK banking industry. During the late 1990s and early 2000s, many building societies converted to banks and were acquired by larger financial institutions. This consolidation resulted in the closure of many smaller building societies and the rise of a few dominant players, including Barclays.
- One of the main reasons for Barclays’ interest in Woolwich Building Society was their strong mortgage business. Woolwich had become one of the leading mortgage providers in the UK, with a large customer base and a reputation for providing high-quality service.
- The acquisition also gave Barclays access to Woolwich’s network of branches across the UK, allowing the bank to expand its physical presence and offer a wider range of services to customers.
- Finally, the acquisition allowed Barclays to strengthen its position in the UK mortgage market at a time when competition was intensifying.
The acquisition of Woolwich was not without controversy. Some analysts argued that the price paid by Barclays was too high and that the bank would struggle to integrate Woolwich’s operations into its own. Others questioned whether the acquisition would lead to the closure of Woolwich’s branches, putting jobs at risk.
Despite these concerns, the acquisition was ultimately successful for Barclays. The bank used Woolwich’s strong mortgage business to grow its own mortgage lending operations, and the two companies were successfully integrated over the following years.
| Date | Event |
|---|---|
| July 2000 | Barclays announces acquisition of Woolwich Building Society |
| November 2000 | Acquisition completed |
| 2013 | Barclays announces closure of Woolwich branches, but commits to retaining Woolwich brand |
| 2017 | Barclays announces merger of Woolwich mortgages with the rest of its mortgage business |
Overall, the acquisition of Woolwich Building Society by Barclays Bank was a significant event in the UK banking industry. It allowed Barclays to strengthen its position in the UK mortgage market and expand its physical presence across the country. While there were some challenges along the way, the acquisition ultimately proved to be a success for both companies.
Woolwich Building Society’s Board of Directors
As with any organization, the leadership of Woolwich Building Society plays a pivotal role in the success of the company. In this case, the Board of Directors serves as the primary decision-making body for the society, responsible for guiding its strategic direction and ensuring sound business practices.
- The board is made up of a mix of executive and non-executive directors, with a total of 10 members as of 2021.
- Among the board members are representatives from parent company Barclays, as well as individuals with experience in fields such as finance and customer service.
- The chair of the board is currently Crawford Gillies, who has held the position since 2015.
One of the key functions of the board is to provide oversight for the society’s operations, including financial management, risk assessment, and compliance with regulatory requirements. They also play a role in setting the overall vision for the organization and ensuring that it remains focused on its mission to provide quality financial services to its members.
Additionally, the board is responsible for appointing senior executives within the society and overseeing their performance. This includes setting executive compensation packages and evaluating the effectiveness of these leaders in achieving the organization’s goals.
| Board Member | Role |
|---|---|
| Crawford Gillies | Chair |
| Audrey Baxter | Non-Executive Director |
| Alison Hutchinson | Non-Executive Director |
| Diana Brightmore-Armour | Non-Executive Director |
| Mike Fairey | Non-Executive Director |
| Bob Wigley | Non-Executive Director |
| Elly Hardwick | Non-Executive Director |
| Sir Ian Cheshire | Non-Executive Director |
| Mark Hazelwood | Chief Executive Officer |
| Andy Gray | Chief Financial Officer |
Overall, the Woolwich Building Society’s Board of Directors represents a diverse group of professionals with a wealth of experience and expertise in their respective fields. Through their leadership, the society is able to navigate the ever-changing world of finance, while staying grounded in its commitment to serving its members.
Woolwich Building Society, established in 1847, was once one of the largest and oldest building societies in the UK. Its primary objective was to offer mortgages and savings options to its members. However, it went through multiple mergers and acquisitions before becoming a subsidiary of Barclays Bank in 2000.
- Members: As a mutual organization, Woolwich Building Society was owned by its members, who were also its customers. Members had the right to vote for the board of directors, who were responsible for managing the society’s affairs on behalf of the members. Members also received a share of the society’s profits in the form of a dividend, depending on the amount of business done with the society.
- Shareholders: When Woolwich Building Society became a subsidiary of Barclays Bank, ownership shifted from its members to the shareholders of Barclays Bank. Therefore, Woolwich Building Society was no longer a mutual organization, and its members no longer had a say in the management of the society. Instead, shareholders gained control over the society and the opportunity to benefit from its profits.
Since then, the society has been fully integrated into Barclays Bank, and its branding has gradually disappeared. Today, it is still possible to find Woolwich-branded mortgages and savings accounts, but they are offered by Barclays Bank, not the mutual society that was once owned by its members.
It is worth noting, however, that Barclays Bank is a public limited company, which means it is owned by the shareholders who purchase its shares. Therefore, even though Woolwich Building Society is technically owned by Barclays Bank, the ultimate ownership of Woolwich Bank can be traced back to the shareholders who own Barclays Bank.
| Ownership | Description |
|---|---|
| 1847-2000 | Owned by its members as a mutual organization |
| 2000-today | Owned by Barclays Bank |
| Today | Ownership can be traced back to the shareholders of Barclays Bank |
In conclusion, Woolwich Building Society was once owned by its members as a mutual organization, but its ownership shifted to Barclays Bank when it became a subsidiary. Today, ownership can be traced back to the shareholders who own Barclays Bank.
The Role of Financial Conduct Authority in Ownership of Building Societies
The Financial Conduct Authority (FCA) is a regulatory body responsible for supervising financial markets in the UK. Among other things, the FCA has a key role in ensuring that building societies operate in a safe and sound manner, with the interests of their members at the forefront of their decision-making.
- One of the ways in which the FCA achieves this is by setting rules and regulations that building societies must follow in order to maintain their status as mutual organizations. These rules cover a range of areas, from governance and accountability to risk management and financial reporting.
- The FCA also has the power to grant or revoke a building society’s authorization to operate. This means that if a society fails to meet the FCA’s standards, the regulator can take action to protect the interests of its members, which may include forcing the society to merge with another institution or even forcing it into administration or liquidation.
- In addition to providing oversight of individual societies, the FCA also plays a role in regulating the sector as a whole. This involves monitoring market trends and identifying potential risks to the stability of the building society sector, as well as working with other regulatory bodies to develop policies and regulations that promote the long-term viability of mutuality.
Overall, the FCA’s role in the ownership of building societies is to ensure that they remain true to their mutual roots and operate in the best interests of their members. By providing a framework for governance, risk management, and accountability, the regulator helps to promote the long-term stability of the sector, which benefits society members, investors, and the wider economy.
The Pros and Cons of Building Society Ownership
Building societies are mutually owned organizations, which means that they are owned by their members rather than by outside investors or shareholders. There are several potential advantages and disadvantages to this ownership structure.
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Pros:
- Members have a say in how the society is run, since they elect the board of directors and can influence key decisions such as dividend payouts and mortgage rates.
- Profits are shared among members rather than being distributed to outside investors or shareholders, which can result in lower fees and better mortgage rates.
- Building societies tend to have a strong focus on customer service, since their members are also their customers.
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Cons:
- Building societies may be more limited in their ability to raise capital than other types of financial institutions, since they cannot issue shares or sell dividends to outside investors.
- As mutual organizations, building societies may be more susceptible to takeover bids or mergers with other institutions that may not share their values or focus on the interests of their members.
Examples of Building Society Ownership Changes
Over the years, there have been many instances of building societies changing ownership structures. These changes can be triggered by a variety of factors, including changes in market conditions, regulatory requirements, or strategic considerations.
One well-known example of a building society that changed ownership is the Woolwich Building Society. In 2000, the Woolwich was acquired by Barclays Bank, which converted it from a mutual organization to a subsidiary of the bank. The move was controversial at the time, with some critics arguing that it was a blow to the building society sector and to the principles of mutuality. However, supporters of the deal argued that the conversion would allow the Woolwich to expand its product offerings and better compete in an increasingly competitive market.
| Building Society | Ownership Change |
|---|---|
| Abbey National Building Society | Acquired by Santander |
| Birmingham Midshires | Acquired by Halifax |
| Bristol and West Building Society | Acquired by Bank of Ireland |
Other examples of building societies that have changed ownership in recent years include Abbey National Building Society, which was acquired by Santander in 2004, and Birmingham Midshires, which was acquired by Halifax in 1999. In each of these cases, the building society was converted to a subsidiary of a larger bank, ending its status as a mutually owned organization.
Woolwich Building Society’s Impact on the UK Financial Industry
The Woolwich Building Society was one of the largest building societies in the United Kingdom. It was established in Woolwich in 1847 and had over 1 million members at its peak. In 2000, Woolwich demutualised and became a bank, ultimately being acquired by Barclays in 2000.
- Increased competition in the mortgage market: Woolwich’s innovative approach to mortgage lending, such as introducing offset mortgages, shook up the mortgage market in the 1990s, forcing other lenders to adapt or risk being left behind.
- Consolidation in the industry: Woolwich’s acquisition by Barclays was part of a trend of consolidation in the UK financial industry, as smaller building societies and banks struggled to compete with larger players.
- Changes in customer expectations: Woolwich’s customer-focused approach to banking, offering flexible mortgages and high-quality customer service, set a new standard for the industry. Customers now expect more from their banks, and those that fail to deliver risk losing market share.
However, Woolwich’s impact on the UK financial industry wasn’t always positive. In the lead up to the 2008 financial crisis, Woolwich, like many other banks, heavily invested in risky mortgage-backed securities, leading to significant losses when the market collapsed.
Here is a table of the Woolwich Building Society’s key financial metrics from when it was acquired by Barclays in 2000:
| Metric | Value |
|---|---|
| Assets | £35.9 billion |
| Profit before tax | £366 million |
| Clients | 1.7 million |
Despite its eventual demise, Woolwich’s impact on the UK financial industry cannot be ignored, and its legacy continues to be felt to this day.
Who Owns Woolwich Building Society? FAQs
1. Who currently owns Woolwich Building Society?
As of 2000, Woolwich Building Society has been owned by Barclays Bank.
2. When did Barclays Bank acquire Woolwich Building Society?
Barclays Bank acquired Woolwich Building Society in October 2000.
3. Why did Barclays Bank acquire Woolwich Building Society?
Barclays Bank acquired Woolwich Building Society to expand its mortgage business and gain access to Woolwich’s customer base.
4. What happened to Woolwich Building Society after it was acquired by Barclays Bank?
After the acquisition, Woolwich Building Society became a subsidiary of Barclays Bank and continued to operate under the Woolwich brand until 2006 when it was fully integrated into Barclays Bank.
5. Are there any Woolwich Building Society branches still in operation?
No, all Woolwich Building Society branches have been rebranded to Barclays Bank branches.
6. Can I still access my Woolwich Building Society account?
Yes, you can still access your account through Barclays Bank online or in person at a Barclays branch.
7. What services does Woolwich Building Society offer now?
As Woolwich Building Society no longer exists as a separate entity, its services are now offered through Barclays Bank, including mortgages, savings accounts, and other banking services.
Thanks for Reading!
And there you have it, the answers to your burning questions about who owns Woolwich Building Society. We hope this article has provided you with the information you were looking for. Remember, you can still access your Woolwich account through Barclays Bank and take advantage of their banking services. Thanks for reading and be sure to visit again for more helpful articles!