BSA: Societies make mutuality matter to members
What does being a member of a building society mean? For some people, mutuality is the very reason they joined the society, but for other savers and borrowers, it can mean very little. In 2007, building societies are putting more effort than ever before into making mutuality matter for ever member, a new report by the BSA shows.
As mutual organisations, building societies are collectively owned by their members. This means those members have a say in how the society is run each year at the AGM.
In addition, many societies are taking steps to ensure that members’
voices are heard by the management more than once a year. This is in contrast to the banks who see customers only as a means of making money for shareholders.
During the 1990s, the building society sector came under sustained attack from so-called carpetbaggers who argued that societies should demutualise and become plcs. This was a wake-up call. Clearly members did not think that membership brought any value.
Since then societies have spent a great deal of time, effort and money to increase the level of member participation, especially voting, which is vital to the democratic process. There are as many ways to communicate, as there are building societies, and the report includes case studies showing:
* Getting out the AGM vote
* 1,000 members attending a branch opening
* Member Panels, Council and Conferences
* Making changes as a result of member feedback
Commenting on the release of the report, Adrian Coles, Director-General of the BSA said:
“The breadth of member engagement activity now being undertaken by building societies means there really is a difference when you save or borrow with a mutual. Societies don’t just want your business; they also want your views. There is very little evidence that banks are putting the same kind of time and effort into listening to their customers.
“Every society will have its own approach to engaging with members.
This report helps to show how much is going on, should spread information on current ideas and may even generate thinking on new ways to get members more involved.”
The report can be viewed here
http://www.bsa.org.uk/publications/industrypublications/member_engagement.htm
Notes to Editor:
1. The Building Societies Association (BSA) represents all 60
building societies in the United Kingdom. Building societies have total assets in excess of £305 billion and hold residential mortgages of over £200 billion, approximately 18% of the total outstanding in the UK.
Societies hold over £190 billion of retail deposits, accounting for about 19% of all such deposits in the UK. Building societies also account for over 37% of all cash ISA balances. Building societies employ almost 50,000 full and part-time staff and operate through around 2,150 branches.
2. Copies of the report can be downloaded from the BSA website at
www.bsa.org.uk or by calling the BSA on 020 7437 0655.
3. Photographs of Adrian Coles are available from the BSA press
office, or from the Association’s website or Headlinemoney www.headlinemoney.co.uk
THE BUILDING SOCIETIES ASSOCIATION
Website: http://www.bsa.org.uk
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