Digitising mutuals: Embracing technology to enhance the member experience

The UK’s building societies have stood resolutely against the test of time, despite operating within a financial services ecosystem that has remained in a near constant state of evolution. Although the sector has seen many changes over the years, they have held steadfast to their values of mutuality, community focus, and exceptional service.

And this dedication continues to be rewarded. Today, building societies serve a remarkable 26 million people across the length and breadth of the country.

As member-owned institutions, building societies have always been distinctive in their commitment to providing personalised financial experiences that align closely with their members’ values. However, growing expectations for digital-first services are leading many to consider how they can now adopt next-generation technologies to enhance their services in line with their founding principles.

An opportunity to strengthen tradition with technology

As the world becomes more digitised, customer expectations for digital services deepen accordingly. Against this reality, building societies are in a better position to respond than they may think. Most already have systems that deliver on the essentials, but there can be little doubt that mutuals are able to benefit further from next-generation technology. More specifically, technology that empowers their members to self-serve and which automates labour-intensive tasks so new avenues to an upgraded member service can be opened.

By enhancing what already works with next-generation technology, building societies have the opportunity to offer faster processing times, personalised digital experiences, and innovative new products. Combining each would allow new and future generations to be reached without compromising the human touch that sets building societies apart.

The role of technology in evolving the member experience

Modern technology provides an exciting opportunity for building societies to simplify operations, allowing them to sharpen their focus on what they do best: serving their communities.

Banking-Platform-as-a-Service (BPaaS) is an example of such technology, providing societies with access to digital onboarding, real-time financial data, and mobile banking applications as part of an integrated, easy-to-use platform. Automating routine procedures allows resources to be redirected towards deepening member relationships, thereby achieving the best of both worlds—a seamless digital experience paired with an authentic, personal service that members know and trust.

Preparing for tomorrow’s members, today

In their quest to discover how younger members can be reached and secured, building societies should again look to technology. Gen Z and Millennials value convenience, immediacy, and digital engagement, but they’re also drawn to institutions with a personal and community minded approach.

Enabled with BPaaS, building societies can meet younger customers where they are, while reinforcing their own unique member-focused values. A platform that allows members to engage through in-app messaging, video calls, or even customised product offerings offers a powerful way to build lasting relationships with generations that might otherwise be tempted to look elsewhere.

Reducing the risks of transformation with a simplified approach

With concerns about migration costs and potential disruption, transformation of technology estates can feel daunting. End-to-end and cloud-ready, BPaaS mitigates the transformation risks that trigger such fears by integrating seamlessly with existing operations. In short, it allows building societies to achieve digital transformation without the associated high costs and complexities of large-scale change.

Indeed, BPaaS provides societies with the freedom and flexibility to innovate, expand their digital reach, and take on new initiatives with operational stability and continuity protected at all times.

Advancing community values in a digital world

Building societies have always proven that they can adapt to meet the customer expectations of the day without losing sight of what makes them exceptional. BPaaS offers the chance to exercise that adaptability once again by incorporating modern digital services that enshrine their member-first ethos.

And BPaaS isn’t just about helping mutuals keep up with the latest trends; it’s about empowering them to flourish in an era increasingly steeped in the digital and continue delivering the cherished service they’ve provided for over 250 years.

As we look ahead, the conversation must shift from whether or not building societies should invest in next-generation technology, but what opportunities they can unlock by doing so and what their members will miss out on if they don’t. With the right partner that understands both their values and challenges, building societies can take advantage of the latest technology in ways that embrace their differentiated purpose and prepare them for a bright, community-centred, digital future.