The Intermediary – April 2025 - Flipbook - Page 41
A journey
in this changing landscape. Bowen points out
that enhancing customer experiences and
achieving operational efficiencies are key benefits,
of social
rmation
transformation
along with using data aggregation to gain market
insights and reach new customer segments.
Bowen sees collaboration with fintechs and
startups as a valuable path to integrating bestin-class solutions. Moreover, he underscores that
Professor
Carl Chinn MBE,
social historian
open banking and API integrations provide small
and mid-sized firms with more autonomy and
the potential to deliver innovative services.
The building society movement
Core values
As building societies continue to navigate the
complexities of the modern financial landscape,
they remain anchored in their core values of
trust, heritage, and community.
Pheasey, for example, emphasises that it is
Marsden’s history that shapes its purpose: "There
are many key lessons that we can take from our
past that reinforce the significance of a memberfocused model that puts customer needs
before profits."
Bowen also highlights the unique strengths
that building societies have compared to new
entrants in the market: "Building Societies have
something new incumbents can’t fake – trust,
heritage, and deep community ties.”
Nevertheless, he acknowledges that "standing
still is not an option," and emphasises the
importance of leveraging digitisation to amplify
rather than undermine these strengths.
"Utilise tech to serve, not replace," Bowen
advises, seeing it as a tool to enhance efficiency,
reduce costs and errors, and personalise the
member experience without losing the essence of
what makes building societies special.
He also says: "Branches matter because the
communities you serve matter, and tech will help
you deliver your services and values better, faster
and smarter."
While the fog of the Industrial Revolution
may have vanished, the driving force of building
societies – forming, flourishing, and fortifying
community bonds – remains ever-resonant.
As they chart their course through modern
challenges and opportunities, the commitment
to fostering a better society continues to be at
the heart of their journey, honouring the past,
embracing the present, and paving the way for a
promising future.
Bowen concludes: “When it comes to Building
Societies, which were the original innovators and
pioneers, the future belongs to those that can
modernise without losing their core purpose and
principles. That’s where building societies can
and should lead.”
●
represents a remarkable journey of social
transformation, rooted in the democratic aspirations
of working-class and lower-middle-class men in the
late 18th Century. From its origins in Birmingham's
pubs in the 1770s, this movement was never just
about bricks and mortar, but about empowerment and
social mobility.
These early societies were groundbreaking in
their approach. Members democratically elected
committees, controlled their own development
and created pathways to homeownership that
were previously unimaginable. Initially focused on
prosperous working-class men, they laid crucial
foundations for broader social inclusion.
The movement's evolution mirrors Britain's slow
march towards democratic representation. From the
restrictive 1832 Reform Act to the gradual expansion
of voting rights, building societies consistently pushed
against societal barriers. They weren't just financial
institutions, but engines of social change.
By the early 20th century, building societies had
transformed homeownership. Before the First World
War, more than 90% of people rented. Through the
interwar years and post-war periods, these societies
enabled middle and working-class families to purchase
homes, fundamentally reshaping social landscapes.
Their impact extended beyond mere property
acquisition. Building societies represented hope – the
opportunity for families to build generational wealth,
to have security, to participate more fully in economic
life. They democratised a fundamental human
aspiration: having a place to call your own.
Women played a subtle but significant role in this
movement. From female publicans hosting early
meetings to widows inheriting membership, they
were integral to the societies' social fabric, even when
formal participation was limited.
Today, as we face unprecedented economic
challenges, the core principles of those early building
societies remain vital: mutual support, democratic
participation, and creating opportunities for those
traditionally excluded from economic systems.
The building society movement isn't just a historical
footnote – it's a continuing testament to collective
economic empowerment.
April 2025 | The Intermediary
