The high street branch has long been a defining feature of UK building societies, but in recent years they’ve faced an increased risk of closure as consumers around the country have adopted digital tools to manage their accounts. But while banks have withdrawn from physical networks, societies are leaning in. 

According to analysis published by the Building Societies Association (BSA), societies now account for over 1,400 branches across the UK, around a third of all financial services branches, up from only around 14% a decade ago. In some regions, such as the East Midlands and Yorkshire, societies account for nearly half of all remaining branches. 

While this reflects the deliberate choice many societies have made, it also presents itself as a market differentiator. As digital-first and -only providers are on the rise, societies have shown they’re committed to community values, and this approach is reflected by members. They have lower mortgage arrears than banks and savings balances equate to a 27% share in savings balances increases. 

However, standing still is not an option, and traditional building society branches must continue to evolve. Some societies have already started reimagining their physical networks, but we’d like to take it a step further and imagine what physical networks may look like further into the future.   
 

Physical locations

Infrastructure is a challenge for many societies looking at modernisation. Historically costly hardware dictated locations due to the need to house servers, safes, and fixed teller counters. This impacts property lease options and potential footfall. 

By modernising branch servicing software, societies can discover new possibilities. Branches no longer need to be large, permanent fixtures with traditional teller layouts. They can operate as community hubs, advice centres, or shared spaces embedded where members already exist, such as local libraries or community centres. This allows societies to maintain visibility and accessibility while reducing the cost, long-term investments, and rigidity associated with branch estates. 

However, this is not a new idea. Research conducted for the Building Societies Report 2025 highlights how societies are increasingly viewing branch locations as multi-purpose spaces that support advisory services, back-office work, and wider community activity, rather than purely transactional environments. 

If a large branch location is no longer required, a smaller space could be leased enabling societies to prioritise seating, community WIFI, small coffee shops, and a play area for children to draw in consumers off high street locations. As banks retreat from the high street, societies have the unique opportunity to fill gaps in the high street, but those not adjusting their branch model now risk falling behind their counterparts.
 

Mobile colleagues 

With the right technology, societies can take the branch to the member, adapting in-person services through mobile colleagues. This creates the opportunity for proactive servicing and onboarding in a way that doesn’t alienate existing members. 

Here are just a few ideas:

Schools and colleges: Deliver financial education programmes, reach a new demographic, and support younger members as they open their first savings accounts. Vouchers could be shared with children for £5 deposited into savings when under 18s visit a branch to create a new account with a parent. 

Universities: Engage with students to promote mutual values early in their financial lives and start building loyalty early through transparent conversations. 

Workplaces: Support adult financial literacy and support workplace savings and financial wellbeing initiatives.

Community groups: Approach parent groups, faith organisations, and other local associations with guidance in a familiar and trusted setting.

Care homes or home visits: Visit members who have a hard time visiting physical locations through appointments. This approach also enables societies to look at members in the area who might benefit from a proactive check in, providing a new level of customer personalisation through human relationships. 
 

Pop-up branches

Societies can look beyond permanent locations through partnerships with small businesses in their local communities. Temporary or pop-up branches are an ideal way to extend reach without compromising on the mutual ethos. 

Unlike promotional pop-ups led by retail banks, societies are often partnership led, community focused, and mutually beneficial. Examples of this are partnerships with local coffee shops, markets, charity shops, or cafes. Societies benefit with access to a temporary location they can advertise to members and the local business benefits from increased footfall. 

Town halls, community centres, church halls, and shared retail spaces are other examples of temporary spaces that can be accessed at little or minimal costs for community events. These models support access to cash obligations and financial inclusion initiatives while still allowing societies to respond flexibly to local member needs and attract a new demographic.
 

How can this be achieved? 

The challenge for societies is not in finding innovative, new ways to engage with their communities, but by legacy teller software that holds them back. SBS Digital Branch empowers building societies to reimagine branch networks to suit the needs of their members and local communities. It replaces traditional teller systems with a modern, flexible, tablet-based solution that supports faster service, embedded UK-specific compliance, and new branch models. 
 

Find out more:

SBS Digital Branch was built in partnership with UK building societies, enabling branches to remain relevant while reducing operational complexity and cost. SBS are excited to be demoing this new solution at the 2026 BSA conference in Edinburgh. Stop by Stand 84 to learn more!