Who owns who? UK banking groups and building societies

Understanding who you're banking with is important because it could affect how well your money is protected. Our guide explains how the financial institutions are separated and linked to help you take the right decisions when it comes to where to put your money.

Key takeaways

• Many UK bank brands share a banking licence and count toward the same £120,000 protection limit under the Financial Services Compensation Scheme (FSCS)

• When large sums are involved, splitting money across truly separate banking licences (not just brands) can boost your FSCS coverage

• Challenger banks and digital-only banks often operate under separate licences and may provide additional diversification of protection

• Bank-group ownership matters beyond protection – it impacts ethical banking choices, risk exposure, and stability during crises

In the UK financial landscape, headline bank brands can be misleading: many high-street names sit within broader banking groups and share licences.

As a customer, understanding which institutions fall under the same umbrella matters – for both deposit protection and clarity on who you’re really banking with.

Why does bank ownership matter?

When multiple brands share a banking licence, the £120,000 FSCS protection applies to the licence as a whole – not per brand. If you have accounts across brands that share a licence, your coverage may be lower than you think.

Conversely, accounts held with banks under distinct licences each qualify for separate coverage. So knowing which banks belong to which group helps protect your money and clarify your banking relationships.

Major UK banking groups

This table highlights major groups and some of their leading brands which banks share licences. For updated full lists (of only brands that share licences) visit the Bank of England website and check the FSCS website to confirm whether specific brands share a licence.

Even if a brand is part of a larger banking group, it could still hold its own banking licence. For example, first direct and M&S Bank are both part of HSBC, however first direct is run under the parent company licence whereas M&S Bank holds an individual licence.

If you still have concerns over how your banking and saving brand is protected, you can ask them directly or check the Financial Services Register.

Challenger banks and single-licence banks

Beyond the traditional giants, a number of newer or digital-first banks have emerged with their own banking licences. These offer useful alternatives if you’re looking for different homes for your deposits or modern banking features.

Notable single-licence banks include:

• Monzo Bank Ltd

• Starling Bank Ltd

• Atom Bank PLC

• Zopa Bank Ltd

These banks often emphasise mobile-first experiences, modern features and independent licences. That means your FSCS protection may restart with each one – a benefit when you’re holding larger sums.

Building societies

Building societies remain a strong presence in UK savings and current account markets. There are over 40 of them, with major names including:

• Nationwide Building Society

• Coventry Building Society

• Yorkshire Building Society

• Skipton Building Society

• Leeds Building Society

These institutions typically operate under their own licences and can provide another route to diversify your deposit base.

Foreign-owned banks and UK licences

A number of banks with foreign ownership also operate in the UK – but what matters is whether they hold a UK banking licence. If they do, FSCS protection applies; if not, you may have less protection or cross-border complexity. Examples include:

• Standard Chartered PLC

• Santander UK PLC

• Bank of China (UK) Ltd

• ICICI Bank UK Ltd

• State Bank of India (UK) Ltd

Always check the FCA’s register to confirm licence status, especially if you’re thinking about putting large sums abroad.

Is my money protected?

The £120,000 FSCS limit (per person, per institution) protects eligible deposits if a bank fails. But if two brands share a licence, you still only get £120,000 between them – not per brand. For example:

If you hold £80,000 in a Scottish Widows account and £60,000 in a MBNA account (both under Lloyds), only the first £120,000 is protected – the remaining £20,000 is not

But if you split the £140,000 between Scottish Widows and a new Barclays account – as long as you don’t put more than £120,000 in one of them – you will be fully protected.

You can find out more with our guide to protecting your savings.

Do banking licences change hands?

Yes, banking licences can change hands in the UK, though it’s relatively rare.

A licence may be transferred or sold when a bank is acquired, merges with another institution, or undergoes a corporate restructure.

The Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) must approve any transfer to ensure the new holder meets all regulatory, capital, and governance requirements.

During the process, customers are typically protected, and existing accounts continue to operate under the same legal and regulatory safeguards.

These controls ensure that even when a licence changes hands, banking services remain secure and compliant.

How do I check on a bank’s ethics and governance?

To check a UK bank’s ethics and governance, start with its website, reviewing annual reports, corporate governance statements, and sustainability or ESG policies.

Look for details on board structure, decision-making, and risk management. Independent sources like FairBanking, Ethical Consumer, and the FCA provide insights into ethical practices and regulatory compliance.

Media coverage can reveal controversies or positive initiatives, while shareholder reports indicate transparency and accountability. Also check if the bank follows recognised ethical or sustainability standards, such as the UN Principles for Responsible Banking.

Using these sources together helps you assess whether a bank operates responsibly and aligns with your values.

How can I be sure my bank will be resilient to economic shocks?

In times of economic stress (such as the 2008/09 financial crisis or COVID-19 knock-on effects), bank group strength matters.

To be confident a bank is resilient to economic shocks, check if it’s

regulated by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA), which enforce strict capital and risk requirements.

Review its financial strength, including capital adequacy ratios, liquidity, and profitability, often published in annual reports. Look for stress test results, which assess how the bank would cope under adverse economic conditions.

Ratings from credit agencies like Moody’s, S&P, or Fitch also indicate stability. Finally, ensure your deposits are protected by the FSCS up to £120,000, giving extra reassurance even if the bank faces difficulties.

Practical steps to protect your money

Here are recommended actions you can take:

• Check your provider’s licence. Visit the FSCS website to confirm the bank’s licence details and FSCS status

• Map your deposits across licences. If you have large amounts (say £200k+), spread deposits across banks that operate under different licences

• Check the brand-licence link. Don’t assume separate brands equal separate licences – always verify.

• Consider ethics and stability. If governance or investment policy matters to you, look for single-licence banks or those with transparent reporting.

• Stay updated on group changes. Banking groups can merge or re-brand; keep an eye on changes in ownership or brand alignment.

If you come into a large amount of cash, for example, £1million from selling a property, your funds can be protected by the FSCS as a ‘temporary high balance,’ The ceiling on this amount is £1.4million and FSCS protects temporary high balances for up to six months.

Compare bank accounts with MoneySuperMarket

Whether you’re looking for a new current account or savings account for your deposit, MoneySuperMarket has your back.

We can help you compare accounts from across leading high street plans, showing you the features that matter, such as switching incentives, interest rates and fees.

All the information is at a glance and when you have made your decision just click through to apply.