"We are asking for recognition of the vital role building societies and other financial mutuals play in delivering inclusive growth, financial resilience, and long-term value for communities across the whole of the UK. We are asking for a seat at the policy table"
- Robin Fieth - BSA
The Building Societies Association (BSA) has launched a new growth plan calling for capital reform to unlock the full potential of the UK's financial mutuals.
At a Westminster reception on Wednesday evening, celebrating 250 years of the building society movement, the BSA unveiled its Building Society Sector Growth Plan.
The plan calls on government and regulators to drive inclusive growth and financial resilience across the UK with two key asks: better access to mutual capital, removing barriers that prevent building societies from financing growth and innovation, and appropriate capital regulations, reflecting the sector's lower-risk approach to lending and enabling fair competition with banks.
These changes will enable building societies to accelerate innovation and expand their role as champions of ordinary working people, helping more people buy their own home, safeguarding savings and strengthening communities across the UK.
A sector already delivering national impact
Over the past 15 years the building society sector has grown stronger and more inclusive. It already makes a significant contribution to the UK economy and society, adding £7.2 billion to the UK economy annually and putting £4 billion extra benefit in people's pockets through better interest rates and member rewards.
The sector serves 27 million members across the UK and accounts for 29% of the UK mortgage market and 37% of all first-time buyer lending. Building societies hold 47% of all cash ISA balances and operate 35% of UK financial high street branches, up from 14% in 2012. Additionally, 95% of employees are based outside London.
The sector's impact is clear, but with improved access to mutual capital and more appropriate capital requirements, building societies could do even more. Building societies are also leading on innovation, from new products for first-time homebuyers to financial education in schools, and initiatives like UK Savings Week.
A voice at the policy table
To achieve change, it is vital that building societies have a seat at the policy table, both nationally and locally, where decisions are made about housing, savings and financial inclusion. Their member insights can help shape solutions to key challenges, from local housing development and energy efficiency to the future of the high street.
"We are not asking for special treatment," said Robin Fieth, chief executive of the Building Societies Association. "We are asking for recognition of the vital role building societies and other financial mutuals play in delivering inclusive growth, financial resilience, and long-term value for communities across the whole of the UK. We are asking for a seat at the policy table."
"In 1775, our founders were the disruptors and innovators of their time," Fieth noted. "Today, that remains the case. Our growth plan urges the government to stand by its manifesto pledge to double the mutual and co-operative economy in the UK and put building societies at the heart of a fairer, more resilient economy for everyone."
