The Co-operative Bank acquired by Coventry Building Society

Coventry Building Society purchased The Co-operative Bank on 1 January 2025, the Building Societies Association (BSA) records in its list of mergers and conversions¹. The society confirms the same date, saying it "purchased The Co-operative Bank" on that day². The BSA lists the deal under 2025 as a "Major acquisition of a bank by a building society"¹.

The purchase is the second recent acquisition of a bank by a building society. Virgin Money was acquired by Nationwide Building Society in October 2024³, a transaction the BSA dates to 1 October 2024¹. The BSA's merger record also lists earlier transfers, including Manchester BS to Newcastle BS on 1 July 2023 and Ipswich BS to Suffolk BS on 9 November 2021¹.

Coventry Building Society says it is now working on the next steps to bring the two organisations together, and is proposing to transfer the bank's business, including smile, to the society². It expects this to happen on 1 January 2027, subject to Court approval². A Court hearing will take place on 2 December 2026 to decide whether to approve the proposed transfer².

The society states that the proposed transfer will not impact an account held with the society, and that there is nothing customers need to do to maintain day-to-day banking². It adds that customers with accounts at The Co-operative Bank, including smile, will have received a letter or email, and points them to documents on the bank's website².

On deposit protection, the society says that if someone is a customer of both Coventry Building Society and The Co-operative Bank, their FSCS eligible deposit protection may be affected². It directs customers with eligible deposits protected by the Financial Services Compensation Scheme, such as savings with The Co-operative Bank, to a customer booklet on the bank's website, which it says will help them decide if they need to do anything to keep eligible deposits protected should the transfer be approved by the Court².

The BSA's November 2025 figures cover building societies and the two mutual-owned banks, which it identifies in a footnote as Virgin Money and The Co-operative Bank³. In the six months to September 2025, that group increased mortgage balances by £7.5 billion to £493 billion and grew cash savings balances by £8.8 billion to £496 billion³. The BSA says the group holds 29% of the UK's outstanding mortgage balances yet provided 32% of net lending in the period, and received 27% of all UK cash savings, against a 23% share of savings balances³.

Why it matters for households

The change of ownership completed on 1 January 2025, so Co-operative Bank customers have been customers of a bank owned by a building society since that date¹. The proposed transfer of the bank's business into the society is a separate, later step, expected on 1 January 2027 if the Court approves it at the hearing on 2 December 2026².

For anyone holding accounts with both Coventry Building Society and The Co-operative Bank, the society says FSCS eligible deposit protection may be affected². The society has not set out in this update what the combined protection position would be, and the detail sits in the customer booklet it points to on the bank's website². The society says there is nothing customers need to do to maintain day-to-day banking, and that accounts held with the society are not impacted by the proposed transfer².

The BSA's sector figures, published on 28 November 2025, describe the wider mutual sector rather than this transaction alone: building societies and mutual-owned banks account for 35% of high street branches, up from 14% in 2012, and employ around 52,300 full and part-time staff across approximately 1,300 branches³. The BSA represents all 42 UK building societies, including both mutual-owned banks, and 7 of the largest credit unions³.

What happens next

A Court hearing on 2 December 2026 will decide whether to approve the proposed transfer². If approved, the society expects the transfer to happen on 1 January 2027². The society says customers of The Co-operative Bank, including smile, have been sent a letter or email and should read the documents on the bank's website². No further dates have been reported.