Sainsbury’s Bank customers have been encourged to make sure their house is in order financially as the group begins its transition to becoming part of NatWest.
Starting on May 1, Sainsbury’s Bank is to transfer all personal loans, credit cards and savings accounts to NatWest. Bank bosses hope to complete the move over to NatWest systems towards the end of 2025.
NatWest has assured there will be no immediate changes. Sainsbury’s told customers: “Your Sainsbury’s Bank Credit Card remains valid and you can continue to use it instore, in other stores or online. As we usually would, we will contact you as and when any changes are made to your product.”
Nectar points will still operate in the same way and personal loan customers will have the same loan term, payment date and payment amount as before.
Aaron Peake, personal finance expert at free credit score service CredAbility, spoke about what customers should do as the major change gets underway.
He said: “The first thing to do is check any recent emails or letters to make sure you’re aware of what’s happening. If you’ve got a savings account, personal loan or credit card with Sainsbury’s Bank, look at your interest rate, fees and repayment terms to see if anything is set to change. It’s also worth checking your direct debits or standing orders, just in case account details are updated.”
Mr Peake also encouraged people to keep an eye out for changes to the Nectar points scheme. He said: “Loyalty schemes are often one of the first things to change after a buyout.
“So if you’re collecting points, you might want to make the most of them now or look for an alternative card if rewards disappear.”
Speaking more generally, he encouraged all bank customers to do a “financial health check” of their accounts. He explained: “Whether your bank’s being bought out or not, look at what you’re getting in terms of interest on your savings and the cost of borrowing. The banking market is more competitive than it looks on the surface and switching can be easier than you think.”
He said Sainsbury’s Bank being taken on by NatWest could mark a “new phase” in the UK banking market. The expert said: “We’ve already seen the high street banking landscape change a lot in the last decade, with supermarket banks stepping back and some of the challenger banks struggling to turn a profit.
“This deal shows that the big players like NatWest are now looking to grow by snapping up smaller competitors, especially if it helps them get hold of new customer bases or lending books.”
Asked for an update on the move, Sainsbury’s Bank said it will keeping customers updated, reaffirming that there will be no immediate changes.
The banking takeover comes after Nationwide completed its acquisition of Virgin Money in October 2024, in a £2.9billion deal.
Vicky Bullen, CEO at global brand and design consultancy Coley Porter Bell, said that the project to move Sainsbury’s Bank customers to being NatWest customers need to be handled with care.
She said: “There will be a need for careful migration so that Sainsbury’s customers understand the changes that are happening. It is key that NatWest considers the equity that Sainsbury’s brand has with its customers and considers the banking experience that it has delivered over many years.
“It needs to communicate clearly all along the way, considering the whole customer journey and experience, making sure that the NatWest experience demonstrates a step forward for those customers.”
