Lloyds Bank has publicly responded to growing calls from its customers to issue goodwill payments, similar to the £50 or £100 rewards distributed by rival Nationwide.
Customer Pressure Mounts on Lloyds
The issue came to a head when a customer directly contacted the bank, which has significant operations in Birmingham, urging it to follow the example set by Nationwide Building Society. The customer pointedly asked: "Why do Lloyds never give their customers money like Nationwide did?"
In its reply, Lloyds Bank acknowledged the appeal of such incentives but stopped short of committing to any direct cash handout. A spokesperson stated: "We understand customers value rewards and incentives. While different banks offer various promotions, Lloyds Bank focuses on long-term value through Everyday Offers, competitive rates, and tailored financial support to suit individual needs."
The Nationwide Precedent: A £600 Million Thank You
The customer's query was directly inspired by Nationwide's major customer reward initiative last summer. The building society distributed over £600 million to more than 12 million of its members.
This substantial payout was branded as 'The Big Nationwide Thank You' and was facilitated by the society's strengthened financial position following its acquisition of Virgin Money, which was completed on 1 October 2024.
Nationwide confirmed the details of the scheme:
- Eligible members received £50 each.
- Payments were made directly into current accounts, instant access, or limited access savings accounts.
- Mortgage customers had the £50 paid into the bank account used for their Direct Debit.
- Where a direct bank payment wasn't possible, cheques were issued.
The building society set a final deadline for these cheques, stating: "Cheques must be paid in by 1 January 2026 to make sure you don't miss out on the payment." It advised any eligible customer who had not received their payment by the specified dates to make contact via their internet bank, app, or a local branch.
Diverging Strategies in UK Retail Banking
Lloyds' statement highlights a clear strategic divergence between major high-street banks and mutual building societies. While Nationwide opted for a high-profile, one-off cash reward to share its financial success directly with members, Lloyds is emphasising its ongoing package of benefits.
These include its Everyday Offers cashback scheme, alongside competitive interest rates and personalised financial support. The bank's response suggests it views sustained, long-term value as a more appropriate reward model than a singular payment.
The contrast has sparked discussion among UK banking customers about how financial institutions choose to recognise and reward loyalty, particularly in a period of historically high profits for the sector.
