Building a Bright Future for Building Societies | Part 2 | Mambu’s Banking Insights for Growth

Technology innovation could be the key to retaining talent.

Our deep dive on building societies continues in the latest edition of Mambu’s Banking Insights for Growth. This time Mike Fisher from Mutual Vision and Nick Lawler from Mambu discuss the shift to serving a wider audience online and the efficiency gains in mortgage processing through automation.

We also hear about how modern technology is not just essential for enhancing customer experience but also attracting and retaining top talent, ensuring these smaller institutions remain competitive and innovative.

Mutual Vision is a specialist in building digital banking platforms for specialist lenders and Mambu is one of the leading providers of banking technology, so know what it takes to digitise a bank. Both speakers are perfectly placed to comment on the current landscape.

Be sure to check out Part 1 of this conversation if you haven’t already, and get more great insights on this topic from Mambu’s own blog, which discusses how building societies are embracing technology for community-centric growth.

A changing landscape

The landscape for building societies in this country has changed significantly in recent years with digital banking opening up new revenue streams on the one hand, and forcing these organisations to compete in a far more crowded market, on the other.

Our conversation looks at how technology has transformed the savings and lending process for these institutions. Historically, building societies operated with a strong regional focus, with customers typically opening accounts in-person at local branches. But this model has changed. Regardless of the competition, this shift will have led to new customers in other areas, especially given the opportunity to offer competitive deals, that then get picked up by consumer watchdogs.

On the lending side, technology is increasingly being used to streamline mortgage processes. While many building societies still value personalised, case-specific mortgage approvals, efficiency wins in most cases. Instead of manually gathering data from multiple sources, technology now enables the automation of data collection, allowing underwriters to make quicker decisions.

Both speakers agree that automation is not just about eliminating human input but optimising it. Other examples include tasks like document uploads, and even customer communication regarding account maturities. Despite these advancements, there are still challenges, such as systems that are not fully integrated, leading to redundant data entry and inefficiencies. The goal is to move towards a more seamless, straight-through processing system, where data flows effortlessly between systems, reducing manual intervention.

The power of data

As with any financial institution today, the importance of data in driving decision-making is huge and building societies are no different. The data is there but the challenge lies in its effective use. Technology can play a significant role here by analysing data trends and providing actionable insights such as identifying potential customers for specific products based on their proximity to a branch or other relevant factors. This is definitely an area where many institutions are catching up.

The gradual evolution of technology within building societies is also discussed, with the participants pointing out it is unlikely to lead to a complete overhaul of the industry’s fundamentals. For instance, building societies should continue to maintain their regional focus while leveraging technology to expand their reach and improve customer service.

Talent retention

One fascinating aspect to this conversation is the impact of digital transformation on staff. Lawler stresses that technology should not only enhance customer experience but also improve the work environment for employees. In a post-COVID world, where remote and hybrid work models are increasingly common, having a robust technology stack is essential for retaining and attracting talent. Employees now expect to work with modern, efficient systems, and organisations that fail to provide these may struggle to retain their staff. The participants note that this aspect is sometimes neglected in favour of customer-facing improvements, but it is equally important for long-term success.

There are many more insights here including a look into what the future holds for building societies. Be sure to watch the full video to find out what they say.

And there are lots more fascinating conversations from Mambu’s Banking Insights for Growth series on our website.