32 Skyline | Edition 6 | Autumn 2023
Jonathon Bright
Intermediary Marketing Manager Dudley Building Society
Regional building societies have always stood apart from larger , national financial institutions due to their distinct focus on local communities . This localised approach allows them to understand specific needs and challenges of members . role in shaping regulations and standards , ensuring their stability and responsible practices .
Commitment to community and customers
The unique role of regional building societies is further underscored by their commitment to financial education and community development . Many building societies actively engage with local organisations and schools to promote financial literacy and responsible money management . By empowering individuals with financial knowledge , building societies contribute to the financial well-being of their members and the broader community .
Putting customers first
Regional building societies often focus on their customers ’ needs more effectively than national financial services businesses . At Dudley , we articulate our commitment to customers ( members and intermediaries ), community and environment using a strategic framework focussed on four pillars – Customer , Community , Climate and Capability .
The emergence of regional building societies
In the late 18th and 19th centuries , the UK saw significant changes due to industrialisation and urbanisation . These transformations created a growing demand for housing , but many individuals found it challenging to acquire properties outright due to high costs . In response to this need , regional building societies emerged as a community-focused solution for homeownership .
The concept was simple yet powerful . A group of individuals , often friends , neighbours , or colleagues , would pool their savings to fund the purchase of a property . This cooperative approach enabled them to share the financial burden of homeownership and gradually acquire a stake in their homes . Members would contribute regular savings , and these pooled funds provided mortgages to other members who wanted to buy properties .
The first recorded building society was the Ketley ’ s Building Society , founded in Birmingham in 1775 . Over the decades , the popularity of these societies rapidly grew , and they spread throughout various regions in the UK . By the mid 1800s , regional building societies had become established as part of the financial landscape .
The growth of building societies in the 20th Century
The 20th Century saw a remarkable growth spurt of regional building societies . As homeownership became an increasingly desirable goal for individuals and families , the demand for mortgage financing skyrocketed . Building societies played a pivotal role in meeting this demand .
Members of building societies continued to pool their savings to provide affordable mortgages to aspiring homeowners . They operated as mutual organisations owned by their members . This cooperative structure further reinforced their community-oriented approach and commitment to serving their members ’ best interests .
By the mid-20th century , regional building societies had become a big feature of the UK ’ s financial services sector . The sector ’ s growth was helped by industry bodies like the Building Societies Association ( BSA ). Founded in 1869 , the BSA provided representation , support , and advocacy for building societies . The BSA played a crucial