Manchester Building Society is making a big return to its home city with plans for a new flagship branch on King Street and millions of pounds of investment. The society, established in 1922, had no branches remaining when it merged with Newcastle Building Society in 2023.
Now, as part of a multi-million-pound investment, the group aims to rejuvenate the Manchester Building Society brand and expand its network in Greater Manchester, defying the trend of banks and financial institutions shutting down their branches.
Andrew Haigh, chief executive at Newcastle Building Society Group, said the society was keen to grow its branch network in the region and are seeking input from local residents on potential locations. According to the group's research, the North West has seen over 702 bank and building society branch closures since 2015.
READ MORE: {}
The member-owned group, is dedicated to maintaining a high street presence, reports .
Mr Haigh said: "We will be recruiting as well in the region. We need to recruit a team in the branch. And the idea is that we will grow. We're committed to branches at a time when others aren't."
He added: "The absolute intent is that this first branch is a flagship foundation, a cornerstone, whatever you want to call it. But then we will start to build this relationship with the region and build out the Manchester Building Society brand."
Later this year, Manchester Building Society will be unveiling its latest branch in the old Diesel shop on King Street. The building society has obtained planning permission to transform the three-storey site into a multi-use space that encompasses community meeting rooms and hybrid work areas for staff.
Mr Haigh said the merged group was investing in growing the Manchester brand and its branch network. He said: "We also were very conscious there could be an opportunity to do something in Manchester and the wider north west.
Most Read
"We're a business that's owned by our customers and therefore we are there to serve our customers. We talk about our purpose as 'connecting our communities with a better financial future'. And you can't do that if you're not physically present in the community.
"So we see branches as a vital part of the way we build a relationship with the communities that we serve."
Manchester's pivotal role in the history of the co-operative and mutuals movement with the Co-operative group still based here alongside the Co-operative Bank, now under Coventry Building Society's wing. Stockport is home to the Vernon Building Society.
Mr Haigh added: "This is in many ways one of the absolute cradles of mutuality and cooperation in the country. So it feels absolutely right to be here."
Mr Haigh insisted there remains a strong customer demand for high street bank branches, noting their closure is often due to cost-saving measures. He added: "Branches are expensive to do, yes. They are not all about transactions in the way they used to be, with people just paying money in. But they are about relationships, about advice, and about being there, particularly for more vulnerable customers.
"It's not our problem to get rid of branches. Our problem is: how do we make them work for the people that we serve? " Mr Haigh said any future branches could be co-located in communal spaces like libraries or by partnering with local charities, as the Newcastle society has already done in the North East.
He said: "The joy of that is that there's an economic side to it, as it makes it cost effective, but you're also partnering where the community is.
Don’t miss
"In North Shields, the YMCA have a coffee shop that is like the beating heart of the community and we're right next door in the same space. Or in one of the library locations we're right next to the children's library, so if you're sitting there in our little branch space you've got The Wheels on the Bus going on in the background! You're right there in the middle of a community and that's where the people are. So that's where we want to be. So who knows where this journey might take us? ".
Councillor Bev Craig, leader of Manchester City Council, said: "We are delighted to see the Manchester Building Society brand brought back to life, just over a century since it was first founded.
"Key to any prosperous and inclusive city is access to financial services. With the total number of bank branches nationwide effectively halving in the past decade, new facilities such as this will provide vital in-person services to residents of Manchester and the wider city-region.
"Commitments to providing community space and forging strong charity partnerships are further examples of how the brand's reintroduction will bring social value to our residents, getting behind our city-wide ambition to Make Manchester Fairer."
Joe Manning, managing director at inward investment agency MIDAS, said: "Manchester Building Society's decision to open a flagship branch in King Street demonstrates strong confidence in our city centre as a place to invest.
"The investment in a physical presence is greatly welcomed, creating new community hubs that bring vital financial services back to our local communities while creating new jobs and economic opportunities across Greater Manchester."
The Manchester society had merged with Newcastle Building Society in 2023 following a challenging period that included a protracted legal dispute with former auditors Grant Thornton.
After the merger with Newcastle was confirmed, former CEO of Manchester Building Society, Paul Lynch, said: "Manchester Building Society members and our Manchester colleagues can look forward with certainty and optimism to the opportunities presented as part of a larger, financially robust society."
Don't miss the latest news and analysis with our regular North West newsletters – sign up here for free