Explore our insight series on navigating Digital Transformation in Building Societies


September 2023

Building societies, like all financial service providers, face the imperative of evolving their digital services in response to customer expectations in an increasingly technology-driven world.

In today’s technology-driven world, digital access to services is now a standard customer expectation meaning that all financial services providers need to evolve their digital services to keep their competitive edge. These front-end digital capabilities are only achievable by a shift to what we now recognise as ‘digital’ core banking platforms.

As mutual organisations, building societies face complex challenges when it comes to deciding on how, and how far, to transition legacy core systems, balancing risk with reward, legacy with opportunity, and tradition with evolution.

At Mason Advisory we have drawn on our experience of the financial services marketplace, and outcomes from working with some of the largest UK building societies, to discuss three key focus areas that need to be addressed to retain and grow market share in these challenging times.  These focus areas will be discussed in a series of three insights over the coming, with the first insight now published, see below.

The first in our digital transformation article series explores if it is possible to bridge between potentially disparate challenges.

Part 1 of 3 –    Building Societies face a digital transformation tipping point – but where do the challenges really lie?

  • In choosing financial services access to digital banking is a priority for almost half of customers globally (48%). That’s hardly surprising in a world emerging from Covid, with rapid innovation rollouts fuelling customer demand.
  • For building societies blending the branch-led customer experience with new digital services is a tricky balancing act as they look to differentiate from market dominating banks and rapidly emerging FinTechs by offering targeted, personalised products for longstanding and new customers alike.
  • Many building societies are embarking on the digitisation path in the context of significant legacies – not just operationally, but culturally. Now, they’re reaching a tipping point. Big decisions need to be made between treading a tried and tested path – dependable, but not equipped to flex – or diving into a brave new world of digital architecture.

Read the Insight here

The second in our digital transformation article series explores how financial services providers can get the best from their supply chain to support digital evolution.

Part 2 of 3 –    Digital transformation in building societies: For meaningful digital transformation, Building Societies must change the supply chain dynamic.

The digital supply chain – can legacy providers really deliver digital transformation for their customers?

  • The supply chain ecosystem is limited, and often relationships with suppliers extend over many years. That can be a huge strength – but a comfortable supplier in a long-term contract may have little motivation to change the status quo.
  • Legacy suppliers have their own legacy architectures often supported by traditional ways of working which often don’t align with a new digital workplace – are they really best placed to support their customers through this significant change?

Read the Insight here

The third in our digital transformation article series explores how building societies evolve their digital capabilities and services to retain and grow their business whilst retaining their core essence.

Part 3 of 3 –    Digital value creation – Digital value creation in the Building Society marketplace: how do we marry technology with tradition?

  • In the current economic landscape the greatest opportunities exist for organisations that have been able to put in place the fundamental digital foundations for growth and profitability.
  • Digital Value Creation highlights the need for organisations to acquire digital competencies on an ongoing basis and invest in ‘stackable’ digital infrastructure that leads to viable digital outputs. The key linkage between these elements is to ensure continued relevance to the customer.

Read the Insight here