The Intermediary speaks with James Paterson, CEO, and Rob Oliver, director of distribution, at Dudley Building Society, to discuss growth, innovation, and what the future holds for the mutual.
Dudley has seen significant growth over the past two years. What do you think is driving that performance?
James Paterson: Over the past year, we’re proud to have increased our gross lending by close to £14m, bringing the total to £124m. We’ve achieved 19% growth in mortgage balances in just two years and looking forward, our plan is to continue to grow in a controlled way.
The growth we’ve seen is down to some steady decision-making and staying focused on areas where we can be famous for what we do. We understand that more borrowers have unusual circumstances now, and it’s clear that brokers are looking for lenders who apply a common sense approach.
Many intermediaries we speak to also see real value in our longevity and how we fund our lending – we are here for the long term and are a consistent and trusted partner – and over the same period we’ve also increased our savings balances by 22%.
Rob Oliver: Absolutely. And it’s not just that the cases are more complex, they’re also more varied. Brokers are seeing clients with multiple income sources, overseas elements, and different types of employment.
We’ve built a proposition that can be flexible around that. And because we’ve stayed consistent, brokers have come to trust that we’ll take a proper look at each and every case.
What’s the thinking behind Dudley’s product strategy going forward?
James Paterson: We are a specialist – we want to focus on being famous for what we do best and clear with intermediaries where we can help support their customers.
For us, it isn’t about offering the widest product set possible, it is about thinking about the challenges intermediaries and customers will have and where we can adapt what we do in a common sense way. We want intermediaries to speak to their customers and think ‘Dudley can help here’.
Rob Oliver: And let’s be honest, brokers don’t need more products, they just need the right ones! The ones that actually work for the people sitting in front of them. That’s why we’re testing new ideas carefully, through pilots and broker feedback. We’re not just throwing products into the market. We want to be sure they serve a purpose.
James Paterson: The feedback’s been brilliant. When we talk to brokers about what we are planning to pilot, they’re often surprised a building society is leading on that. But that’s exactly where we want to be.
What are your plans around innovation and proposition development in the months ahead?
James Paterson: Underwriting is still where a lot of the frustration lies, and we are addressing that head on. We are currently investing in and making great progress on a significant technology programme to really lift the consistency of our decision making, speed of process and agility.
That will mean more automation, and our underwriting resources being focused on really helping those cases where a more human, common sense approach is needed.
The new platform also represents us embracing artificial intelligence (AI), with tools in-built that will help make sure we deliver for intermediaries in a faster and even more consistent way into the future.
Rob Oliver: And it’s not just about speed. It’s about taking friction out of the process. If we can cut down on the number of times a broker has to chase an update or resend a document, that’s a win.
Technology should make things easier, not more complicated. Communication is still key throughout the process, we like the old fashioned way of speaking to a broker.
James Paterson: Many people also talk a lot about innovation, but at times, it is as valuable doing the simple things well. So, alongside the investment in technology, we’ve also been focused on ensuring we have a really strong team, who have the resources to deliver.
That has been a challenge of late where with the level of intermediary demand for what we do continually growing, we’ve made decisions to really focus our time on the existing applications with us and delivering for intermediaries, rather than consistently chasing new business.
It is an ongoing balance we have to strike and we are forever learning and improving, as demonstrated by the growth in our intermediary net promoter score and our lending growth.
Has the broker relationship side changed as lending volumes have increased?
James Paterson: We are 100% intermediated and don’t actively seek to trade with as many intermediaries as possible. We are focused on building long term partnerships and  track broker sentiment closely.
Our Net Promoter Score is currently 40.3, which is well above the sector average, with the Society scoring highly for criteria, service and our products. That matters, because it shows that even as our volumes grow, we’re not losing that connection with the broker community.
We’ve also made sure intermediation is at the heart of our retention pricing model, which keeps everything intermediated and recognises loyalty, showing that we’re not just chasing new business for the sake of it.
Rob Oliver: That shift has come from brokers too. They’re more comfortable placing directly with us than they were a few years ago. Two years ago, most of our business came via packagers, now, direct cases make up the majority. That says something about how our visibility and trust levels have grown. Packagers still play an important part in the market and we will continue to support them alongside the DA or AR brokers.
Dudley became the first UK regional building society to achieve B Corp status in July. How does that link into your broader goals?
James Paterson: Impact is important to us. This year we achieved our highest ever customer net promoter score, our highest ever intermediary net promoter score, and became a Great Plan to Work for the first time, including being a Great Place to Work for Women.
Looking long term, we recognise that there are lessons from the past – building societies have been around 250 years by instinctively doing the right thing by members, and not just turning a profit. Becoming B Corp certified puts some rigour around that. It holds us to account in areas like governance and customer outcomes and will continue to challenge us to improve.
That kind of progress really matters to us, and being B Corp certified makes sure it’s more than just words. We believe over time, it will become a real differentiator for us, as customers look to businesses they can really trust.
Looking ahead, what do you want brokers to take from Dudley’s performance and proposition in 2025?
James Paterson: That we’re not chasing scale for the sake of it. We’re growing, but in a measured way. Our plan is simple. Stick to what we’re good at, continue to improve every day, and keep backing borrowers who need a lender willing to take a common sense view. If we do that consistently, brokers will keep coming back.
Rob Oliver: And we’re not standing still. We’ve got a clear direction, and we’re backing it up with new pilots, better tech and more broker engagement. Dudley’s always had a strong reputation in specialist lending, but we’re showing we’ve got the ambition and the infrastructure to take that further.
