Nationwide Building Society has announced a dominant position in the UK's student current account market, capturing a massive share of new customers just three months into the academic year.
Student Banking Market Sees Major Shift
The mutual lender reports that more than 80,000 students have opened its FlexStudent account since the summer. This figure represents a staggering 46 per cent of the overall student account market for this intake period. Notably, this is around double the number of accounts opened during the same timeframe last year.
Tom Riley, Director of Group Retail Products at Nationwide, said the society's consistent growth since launching its first student account in 2016 demonstrates its strong appeal. "Students want great food and even greater value," Riley stated, highlighting the strategy behind their offer.
Food Vouchers Drive Engagement Ahead of Christmas
A central pillar of the FlexStudent account's popularity is its partnership with food delivery service Just Eat. Since the portal launched in July, over 62,000 students have registered, downloading a remarkable 125,000 takeaway vouchers worth £1.25 million.
With the Christmas period approaching, Nationwide anticipates usage will surge rapidly. The society is offering a total of £9.8 million worth of free food across the 12-month promotion, providing significant cost-of-living support for students.
Branch Network and Mutual Status Add to Appeal
Riley also pointed to the society's hybrid service model as a success factor. "It’s encouraging to see students opening accounts in person, as well as online, reinforcing our decision to invest in both digital and face-to-face service," he said. This aligns with Nationwide's branch pledge, which commits to maintaining a physical presence.
Finance experts have praised the offer. Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, commented: "It is fantastic to see students choosing a bank account that suits their lifestyle by taking advantage of cost-saving perks." She noted that Nationwide provides one of the market's most generous student overdrafts and its branch support is a "huge draw" for those managing finances independently for the first time.
Nationwide faces competition from rivals including HSBC UK, Santander, Lloyds, and NatWest. However, the building society believes its combination of perks, its status as a modern mutual offering better savings rates and Fairer Share Payments, creates a compelling proposition for new members.
