Building societies have always had a clear place in UK financial services. They are trusted, member-led organisations with a strong role in mortgages, savings and local communities. In many ways, that mutual model feels more relevant than ever.
But there is a challenge building beneath the surface.
The sector is growing, expectations are rising and the operating environment is becoming more complex. Building societies and mutual-owned banks now represent a significant part of the UK mortgage and savings market. That is a great story for the sector. But growth also creates pressure.
Growth is good, but it needs the right foundations
For building societies, growth is not just about getting bigger. It’s also about:
· Continuing to serve members well
· Staying competitive
· Supporting brokers
· Helping first-time buyers
· Remaining relevant in a market increasingly shaped by digital-first experiences.
The challenge is that many societies are trying to do this while operating with legacy platforms, manual processes, disconnected data and internal teams that are already stretched beyond capacity.
That is where the modernisation of building societies becomes key. This is not modernisation for the sake of it. It is also not a huge transformation programme that takes years to prove value. It is a practical, targeted modernisation programme that helps building societies remove friction from the way work gets done.
The pressure points are becoming harder to ignore
Across the market, I am seeing five common pressures coming together.
1. Member expectations are changing. Today people expect simple, fast and transparent journeys, whether they are opening a savings account, applying for a mortgage or contacting their building society for support.
2. Broker expectations are rising. Brokers want clearer case tracking, faster updates and less time spent chasing for progress. Sector research has shown that intermediary-facing digital capability is a key investment area for building societies.
3. Regulation is increasing the need for evidence and control. Consumer Duty, operational resilience, vulnerable customer support, financial crime and fraud all require stronger processes, clearer ownership and better auditability. The FCA has specifically highlighted these areas in its strategy for building societies.
4. Cost-to-serve is under pressure. Societies need to protect the service quality that makes them different, while also finding ways to reduce manual effort and improve efficiency.
5. Technology debt is limiting pace. Many societies know that parts of the technology estate are no longer fit for purpose. The issue is often not ambition - it is how to modernise safely without creating disruption.
Modernisation does not always mean replacement
One of the biggest misconceptions is that meaningful change must start with replacing core systems. Sometimes core modernisation is needed. But in many cases, there is significant value in improving the workflow, data,automation and colleague experience around existing platforms.
That might mean:
· Automating manual mortgage triage
· Improving broker case visibility
· Simplifying member onboarding
· Giving colleagues better access to knowledge and procedures
· Replacing spreadsheet-led controls with governed workflows
· Using AI safely to support document-heavy or repetitive processes
This is where AI, automation and low-code technologies are powerful. Used well, these technologies help building societies move faster, reduce operational friction and improve service without losing the relationship-led approach that makes the mutual model so distinctive.
AI is a huge opportunity, but only when practical and governed
AI is now firmly on the agenda for building societies. But the real opportunity is not about experimenting with technology because it is new. It is about identifying where AI can improve real business outcomes.
Some key, outcome-led examples I’ve seen across the sector include:
· Faster mortgage and savings journeys
· Reduced manual rekeying
· Better broker responsiveness
· Improved colleague productivity
· Stronger regulatory evidence
· More consistent member support
The key is to start with the business problem, not the technology (a mantra that Robiquity live by).
For regulated mutuals, safe adoption matters. Like the wider financial services industry, AI needs clear governance, data controls,ownership, adoption support and ability to demonstrate measurable value. Without these, there is a risk that innovation either stalls completely or grows in pockets without enough control.
The next steps for building societies
The most successful building societies will be those that combine mutual trust with modern execution.
This means protecting what makes the sector special, while modernising the operating model around it. It means improving the experience for members, brokers and colleagues. And it means using AI, automation and low-code in a way that is practical, governed and linked to value.
At Robiquity, we help organisations identify where automation, low-code and AI can make the biggest difference, and how to scale those capabilities safely through the right governance, operating model and adoption approach.
For building societies, the opportunity is clear: modernise where it matters most, prove value quickly and build the foundations for safe AI-enabled transformation.
If you are thinking about where modernisation could make the biggest difference in your building society, we’d be happy to share how Robiquity can help you assess the opportunity and build a practical roadmap. Contact us today to arrange an initial conversation.
In part 2 of this blog series, coming next week, we’ll look at where AI, automation and low-code can create practical value for building societies, from member and broker journeys through to operational processes.
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