An industry report published by Whitecap Consulting in collaboration with the Building Societies Association (BSA) and a group of key stakeholders has highlighted the strong performance of the building society sector over recent years, and anticipated continued growth.
The Building Societies Report 2025 provided a comprehensive analysis of the strategic landscape facing the building society sector as it looks ahead to 2030 and beyond.
The report was launched at an event hosted at Leeds Building Society’s head office, attended by representatives from building societies and key industry stakeholders.
Coinciding with the 250th anniversary of the UK’s first building society and the United Nations’ Year of the Cooperative, the report has been published the week before the BSA’s annual conference, which takes place in Birmingham on 7th and 8th May.
It follows a previous report published by Whitecap in 2021.
The key findings of the research found that continued growth is a key priority for building societies, partly due to market opportunity, but also due to increasing regulatory costs they are facing.
In addition, findings revealed that the building society sector needs to continue to lobby for fair and proportionate regulation, to enable it to compete on a level playing field in highly competitive mortgages and savings markets.
Investment in technology was also an ongoing focus. Artificial intelligence (AI) was the most prominent tech theme in the research, although mobile platforms and apps were viewed as the top priority for technology investment over the next five years.
The report found that building societies are also committed to the broker market, with over 60% of survey respondents identifying investment in intermediary-facing digital capabilities as a key focus area in the next five years.
Robin Fieth, chief executive officer of the Building Societies Association (BSA), said: “Digital investment combined with a focus on community continue to be important for our sector as members reassess not just their technology stack but the evolution of systems, in particular AI.
“Societies are continuing to evolve their savings and mortgage propositions to better deliver solutions that provide value and continue to help a broad range of customers navigate their way through the housing market.
“The research from Whitecap highlights the additional burden the sector often faces due to a lack of proportionality in regulation and challenges in accessing capital for growth.
“With the right support and investment, building societies will continue to grow and provide financial support to savers and borrowers for the next 250 years.”
Richard Coates, managing director at Whitecap Consulting, added: “Over recent years we have worked extensively in the building society sector across topics including business strategy, proposition, ecommerce, technology and target operating model.
“As a result, we are acutely aware of the unique characteristics and strengths of mutual organisations and the issues they face.
“This new report provides a positive update on the development and modernisation of the building society sector and highlights key areas of focus in relation to the core markets of mortgages and savings, as well as discussing the future of branches, green finance, diversification, collaboration, and of course technology.
“I would like to take this opportunity to thank our partners and participants, as well as the Whitecap team who have worked hard on this project.”
Tim Bowen, CEO at Mutual Vision, said: “Everyone at Mutual Vision is excited to see the 2025 Building Societies Report being launched. 2025 has the potential to be a defining year for mutuals and an opportunity to build a future that is as rich as their past.
“If building societies, co-operatives and credit unions can compete with the banks and neobanks on tech and customer experience, they will always win the other half of the battle — competing on purpose. This report provides crucial insights to help mutuals strengthen and grow”
Chris Little, chief revenue officer at Finova, said: “As a technology partner to a wide range of UK lenders including building societies, we’re proud to support this important report from Whitecap Consulting.
“The findings reflect what we’re seeing across the sector—an ambitious drive for digital transformation, with a clear focus on intermediary engagement, AI innovation, and mobile-first customer experiences. Building societies play a critical role in the UK’s financial ecosystem, and we’re excited to help them navigate the next chapter through modern, scalable origination and servicing technology.
“This report marks a timely contribution to the strategic dialogue shaping the sector’s future.”
