Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.
Building societies urged to use tech for member relationships, not just products
Graham Sumsion, head of lending at Monmouthshire Building Society, has argued that building societies should use technology to build stronger member relationships rather than simply offering better products. Writing in Mortgage Solutions, he said too much of financial services remains organised around products rather than people.
Products versus life goals
Sumsion said the sector talks about mortgages, savings accounts, ISAs and current accounts, measures product sales and balances, and structures teams around product lines. Customers, he argued, do not think about their finances that way. They think about getting on the property ladder, moving to a larger home, managing rising household costs, supporting children as they become financially independent, planning for retirement and building long-term security.
For financial companies to remain relevant, he said it will be important to understand those life goals and build relationships around them, rather than simply offering financial products at key points in time.
Changing customer expectations
Sumsion identified changing customer expectations as both a challenge and an opportunity for building societies. Today's consumers compare every interaction against the best experiences they receive elsewhere, whether ordering goods online, booking travel or managing subscriptions, and increasingly expect services to be simple, intuitive and available when and where they need them.
At the same time, he argued mutuals hold an advantage larger institutions would welcome: their purpose has always been rooted in supporting members and communities over the long term, rather than maximising short-term profit. Technology, he said, should be viewed as an opportunity to strengthen that relationship-based purpose, not as a race to keep up with competitors.
Technology as a means, not a destination
Sumsion warned that many companies make the mistake of treating technology as the destination. Customers do not wake up wanting a mobile banking app or aspire to complete a digital mortgage application, and they will not care what lending platform sits behind the scenes. What they want is confidence, convenience, reassurance and support, and technology matters because it helps deliver those outcomes.
He pointed to well-designed mobile apps giving customers greater visibility and control over their finances, digital mortgage journeys reducing paperwork, complexity and waiting times, and better use of data allowing organisations to anticipate customer needs and provide more relevant support at different stages of life. The technology driving this is often invisible to the customer, he noted. What they remember is how easy the experience felt.
Relevance to younger generations
Sumsion said this is particularly important for building societies looking to attract younger generations, many of whom will have little to no loyalty to traditional financial brands and some of whom will not know the difference between banks and building societies. They are accustomed to digital experiences that are personalised, responsive and seamless.
For UK letting agents and inventory clerks, the piece is a useful signal of where mutual lenders see the market heading: digitally led, relationship-focused lending journeys that could shape how mortgage customers, including landlords and first-time buyers, interact with lenders in future.
Source: Mortgage Solutions