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Nationwide to Invest £1.3 Billion in Large-Scale Tech Revamp

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Nationwide Building Society has announced £1.3bn technology investment over the next five years in order to transform its digtal offering, as competition from fintech start-ups intensifies. The investment will go towards improving online services, increasing the use of AI and launching a new technology hub. The latter, Nationwide noted, would create up to 1,000 new jobs. The group is aiming to “simplify its technology estate and build new technology platforms to enable growth and diversification, and drive forward digital, data and analytic strategies.” Nationwide’s mobile app now has 2 million active members, more than double the number two years ago, with 200 million mobile log-ins last year. The rapid growth makes the need for a new technology infrastructure more pressing. There will be no “single big bang change or migration event,” said chief executive Joe Garner, in response to concerns following TSB’s failed IT migration, which left thousands of customers without access to their accounts in April. A part of the investment will also go towards fostering fintech innovation. Nationwide will dedicate £50 million to launch an investment fund, seeking out start-ups that can take advantage of changes in rules around open banking.