Ethical savings boost with Co-op-Britannia merger
Savers who care about whether their savings are used to fund arms companies or renewable energy received welcome news today with the merger of Britannia Building Society and The Co-operative Bank.
The merger aims to create a “trusted and ethical alternative to shareholder-owned bank.”
All three million Britannia members have joined or been given to opportunity to join the Co-operative Group, where they will continue to earn financial rewards on their Britannia products.
With the acquisition, Co-operative Financial Services (CFS) will hold more than 300 branches across the UK and employ more than 12,000 people.
Britannia’s “extensive high street presence and savings and mortgage product strength” will be combined with CFS’s “personal and corporate banking, insurance and fund management expertise,” the Co-operative said.
Both businesses will retain independent brands and products.
Neville Richardson, former chief executive of Britannia, will lead the new financial institution.
“We aim to provide a genuine alternative to those disillusioned with shareholder owned banks; ours will be an ethically-led organisation, which will reward members and be completely accountable to them,” Richardson said.
Bob Burlton, CFS non-executive chairman, will take charge of the new board.
“We are doing this at a time when many people are calling into question the integrity of their banks,” Burlton said.