Loading…

Guest blog: The future of savings: Innovation opportunities for building societies

The future of savings was a key topic for discussion at the Building Societies Conference earlier this year. As part of that discussion, Peter Neufeld (EY) is well placed to outline key areas building societies should focus on to positively impact their members’ saving experiences.

This article was first published in Society Matters magazine

Peter Neufeld, EYPeter Neufeld is Partner & Head of Business Transformation, Innovation & Experience Design for Financial Services at EY

There is no doubt that the UK has faced a challenging macroeconomic environment in recent years – from COVID-19 lockdowns to high inflation and interest rates, both businesses and households have been impacted by cost pressures. These events led to many households dipping into their savings, accessing funds set aside for milestones like home purchases. 

While interest rate cuts are expected in the coming months, they will remain high for some time, meaning savings accounts continue to be a particularly attractive asset class for UK households. 
As we move further into the digital age, it's crucial for building societies to innovate and continue to offer compelling savings solutions to both retain and attract members. Here, we explore key areas where building societies can positively impact their members’ saving experiences.

1.    Educate first-time savers

Building societies are already purpose-led through their commitment to members and mutuality. There is an opportunity to take this a step further by educating more new savers on how to begin saving effectively. By demonstrating positive saving habits and helping to set realistic financial goals, building societies can leverage their member-focused ethos to foster a culture of smart-saving.

2.    Lead workplace savings

There is an opportunity for building societies to partner with local and regional UK businesses to offer employees innovative savings options. These collaborations – which could also involve third-party platforms and FinTechs – can harness the power of Open Banking and Open Finance to simplify the savings process from one pay cheque to the next, helping employees to achieve personal financial objectives.

3.    Connect across families

Building societies can also play a pivotal role by facilitating savings strategies across entire families. Our research finds that it often takes more than five years and assistance from family for first-time buyers to accumulate a mortgage deposit, so building societies can create tailored solutions to bridge the gap between young savers and the financial support of their relatives. This intergenerational approach not only helps individuals to save for a home, but also cements the role of building societies in supporting financial wellbeing across families.

4.    Embracing data to personalise solutions

Building societies are widely viewed as trusted, community-oriented providers, and as the landscape of Open Banking and Open Finance continues to evolve, members will find managing their finances with building societies more straightforward than ever. Even if firms don’t offer a transactional account, they can now gain deeper insights into members’ financial habits to offer more tailored solutions. However, it is imperative that building societies to continue to prioritise cybersecurity and fraud protection to ensure members’ data is protected.

Next steps

Building societies should now consider how best to implement these strategies, focusing on member education, workplace partnerships, family financial planning, and leveraging technology to enhance the savings experience while maintaining the highest security standards.

For more information about EY get in touch with Peter Neufeld 

You may also be interested in...

BSA Card
  • BSA.Newsbite_1 Society Matters
  • Savings

Building better financial futures

Society Matters - Autumn 2025

BSA Card
  • BSA.Event Event
  • Mortgages & Housing

Shaping the Future of Home Buying and Selling

An in person event hosted by BSA Associates, Novus Strategy and LMS Margins, efficiency and customer trust in home buying are being reshaped by d...

BSA Card
  • BSA.PressRelease Press Release
  • Savings

The Building Societies Association warns that ISA reforms could undermine investment aims

The BSA publishes Budget submission to the Treasury

BSA Card
  • BSA.IndustryResponse Industry Response
  • Conduct Risk & Regulation

FCA CP25/24: Quarterly CP No.49 - Chapter 3 Mutuals registration function removal of statutory declarations

The BSA has responded to the FCA's proposal to remove statutory declarations from FCA forms except where required by legislation

BSA Card
  • BSA.IndustryPublication Research & Reports
  • Mortgages & Housing

First-Time Buyers: The Missing Millions

Update report into the challenges facing first-time buyers

BSA Card
  • BSA.IndustryPublication Research & Reports
  • Banking & Payments

Building Societies Report 2025

Whitecap Consulting, in collaboration with the Building Societies Association (BSA) and a group of key stakeholders, has published the Building Societ...

BSA Card
  • BSA.IndustryPublication Research & Reports
  • Savings

Understanding the role of savings in building longer-term financial security

A research report from the Personal Finance Research Centre, University of Bristol.

  • BSA.IndustryPublication Research & Reports
  • Thought leadership

Harnessing the mutual sector's potential for growth

Removing the barriers to secure economic, societal and environmental benefits

BSA Card
  • BSA.Event Event
  • Prudential Regulation

Risk appetite training for credit unions

With increasing regulatory focus on the safety and soundness of Credit Unions, it is crucial that you understand the regulator’s risk appetite expecta...