Newcastle Building Society has become the first UK organisation to receive Mutual Value Measurement accreditation, recognising its commitment to serving members and their communities.
The MVM Framework was developed in Australia by The Business Council of Co-operatives and Mutuals, working with researchers at Monash University in Melbourne.
It was created to assist co-operatives and mutuals with a consistent approach to understand, measure and report their positive impact on members, the economy, and their communities.
Since then, eight co-operatives and mutuals in Australia have achieved MVM Accreditation; Newcastle Building Society was the first to be accredited outside of Australia.
Andrew Haigh (pictured), chief executive officer at Newcastle Building Society, said: “As a mutual, member-owned organisation, our purpose is to ‘connect our communities with a better financial future’.
“For us, delivering our purpose and creating value for our customers and communities is about much more than just the consistently good rates we aim to offer through our savings and mortgage products.
“Our member-ownership gives us a different outlook to most shareholder businesses.
“Our commitment to high streets and growing our network of branches and community spaces; our support for first time buyers looking to get on the property ladder; our strategic skills and employability partnerships; our financial education programmes; the provision of face-to-face financial advice through our subsidiary Newcastle Financial Advisers and our commitment to local charities and community groups are just some of the many examples of how we aim to add value through a mutual mindset.”
He continued: “Traditional reporting and accounting metrics tell us a great deal of essential information about the financial health and performance of the business but tend not to focus on the long-term positive impact we deliver for members and their communities.
“That’s why the Mutual Value Measurement Framework is such a useful additional perspective in defining goals and measuring performance, helping us capture and understand the value for members of being part of this mutual organisation and how we bring the society’s purpose to life.
“That’s particularly important to us because we see member value is a key element of our purpose-led strategy and a fundamental factor in how we maintain a relevant, robust and sustainable business for generations to come.
“We’ve worked closely with creators of the framework and learned from other mutuals who have adopted the model, so I’m delighted that we are the first organisation to take MVM outside Australia.”
Haigh added: “MVM Accreditation is a helpful step for Newcastle Building Society, as we better understand our impact and demonstrate value to our present and future members and customers.
“Importantly, we’re also using insight from our application of the framework to help us focus our strategic planning, engage further with all stakeholders, and ensure even greater relevance for our members and the communities we serve.”
