At the Building Societies 2023 Annual Conference in Liverpool, BSA chief executive Robin Fieth (pictured) highlighted the beauty of the simplicity of the mutual sector’s social purpose in a world that has grown increasingly complex.
He emphasised the importance of remaining true to the sector’s roots, which date back to 1755, when the first known building society was founded in Birmingham.
Fieth acknowledged the fleeting focus on building back better and a potential new covenant between Government, business, and society that challenged the purpose of business to maximise shareholder returns. However, he noted that building societies and credit unions continue to prioritise member value, as they have always done.
In his speech, Fieth explored several complexities faced by financial services firms, including the economic backdrop, the focus on unicorns and gazelles over steady growth, the aftermath of SVB and Credit Suisse, and the implications of Basel 3.1. He stressed the need for better risk management, governance, and supervision, supported by strong, effective, and appropriate regulation.
Fieth said: “No country has a right to growth. It is something that must be earned through hard work and smart investment in infrastructure, innovation and talent.”
He added: “As we continue to emerge into a post-pandemic economy, currently characterised by higher inflation, higher interest rates and monetary policy tightening, there should, in my view, be a premium on our sector’s long-term steady growth record.
“Our modest credit risk appetite. Our dedicated focus on the needs of members, without the distraction of demanding shareholders. When we talk about the importance of diversity in UK financial services, this is what we mean.”
