The Garrulous Jay – Moments Of Truth

In marketing the term “moments of truth” describes those points in a customer’s relationship with a brand that fundamentally change their view of the business. They can cement or destroy loyalty. The news about NS&I this week provides a case study of a negative ‘MoT’.

The origins of NS&I, or National Savings Bank as it was called until 2002, can be traced back to the establishment of the Post Office Savings Bank in 1861 by the Palmerston government.

Its aim was to provide ordinary workers with a way “to provide for themselves against adversity and ill-health” through the Post Office network. A noble objective that may be ringing in the ears of those dealing with the current debacle with its direct link to bereavements.

Today NS&I offers a range of cash-based savings products, all backed by the government guarantee which forms a key part of their attraction. As the website says, “We’re the only savings provider that secures 100% of your savings…as we’re backed by HM Treasury”.

As of March 2025, the bank managed £240 billion for its 22 million customers, with by far the most popular product being Premium Bonds, which accounted for £134 billion or 55% of total deposits. In 2025 alone more than 470,000 new Premium Bond accounts were opened: nearly 1,300 a day.

NS&I therefore has much in common with the NHS. Through Premium Bonds especially, and ‘ERNIE’ the computer that generates the winners, it has become a ‘much-loved’ government owned UK institution with a storied history.

This makes the shambles of 37,500 NS&I customers being unable to access as much as £476 million of deceased relatives’ Premium Bond accounts, sometimes for years, all the more damaging as a moment of truth.

This is particularly the case when the impact is felt by the organisation well beyond those customers affected by the issue as it becomes widely reported by the media. The moment of truth effectively becomes generalised even though it only directly impacts a small number of people: in this case less than 0.2% of customers.

It is no surprise therefore that NS&I’s CEO, Dax Harkins, has left his post. While Pensions Minister Torsten Bell disclosed yesterday that NS&I had notified the Treasury in December of “operational failures” in tracing funds, it is clear the problem had been there for years before this.

Harkins was an NS&I insider of 20 years, leading a government-backed business with a strong brand built on trust over decades. There is a risk that this brings with it an absence of perspective or urgency, which I suspect may have contributed to the problem.

It may also be the case, however, that Harkins had too much on his plate. Project Rainbow, the organisation’s digital transformation project, was described in February by Public Accounts Committee chair, Sir Geoffrey Clifton-Brown, as a “full-spectrum disaster”.

While the latter may come at a higher short-term financial cost, it is the negative moments of truth with the customer that do far more long-term damage to a brand.