The panel was hosted by Geert Pick, Head of Clients and Growth, with Barry Carter, Chief Executive of Hinckley & Rugby Building Society, Paul Denton, Chief Executive of Scottish Building Society, and Ben Verdin, UK Lending Head of Product Strategy and Management of SBS. 
 

As the UK financial services sector continues to evolve, building societies find themselves in a unique position. While digital suppliers have caused turbulence in the industry, many banks are closing branches and adopting a digital first approach, building societies strive to keep them open. 

When people are faced with life shifting moments, many would prefer to speak to another human face-to-face. This is where building societies have stood firm and created a differentiator for themselves in the market. While adapting their branch strategies, in recent years societies have found ways to adapt and enhance the experience but still find themselves limited by the legacy technology within the branch. Digital, self-service solutions that members can use for day-to-day account servicing are on the rise but the importance of balancing digital, and in-person, engagements is extremely important to continue to provide a mutual member experience.

Make the branch a strategic asset
 

At the start of the session, the recent figures released by Scottish Building Society showing their balance sheet doubling over the last five years was celebrated. Paul Denton credits much of the success to the work of colleagues in local branches and their relevance to members. This was highlighted as the word ‘branch’ has been used more than anything else in their feedback. 

Barry Carter agreed, members seek reassurance, not just transactions. Branches are about presence in a member’s life and being a part of big moments, such as buying a home, saving, or even navigating a bereavement. Nothing replaces sitting down with someone who lives locally in the community, knows your name, and understands the local context of your needs. 

Digital vs Human
 

While both societies agreed they are committed to their branch networks, both acknowledged the move to digital is crucial to their success. Branches are not present in communities simply for nostalgia, but instead, they are evolving into experience centres that offer advice, workshops, and community engagements. Spaces are being redesigned so that they feel less and less like a traditional transactional teller branch as every year passes. 

Branches are being reimagined to meet the diverse demographic needs of their local communities. From tech-savvy first-time buyers to a retiree who prefers to sit down for a cuppa and a chat, all experiences are being considered. This is where digital providers simply cannot match building societies. 

Barry Carter and Paul Denton discussed how they are using digital to enhance human interaction. Digital tools enable bank staff to sit down at a sofa and have a chat, making the experience more familiar and less formal. Branch layouts are being redesigned, colleagues are being trained, and digital tools are being blended in where it enhances, but not replaces, the human touch. 

Barry Carter touched on a story of a Hinckley and Rugby member who nearly fell victim to a scam. It was not technology that flagged it, but instead a colleague in branch who knew the member, noticed some discrepancies in their normal behaviour, and flagged it. Without this intervention, this pensioner could have lost tens of thousands of pounds and showcases exactly why the human element is still so important. 

Ben Verdin provided the perspective from the tech industry and challenged the notion that digital innovation is only for big banks. “Our customers are committed to keeping branches open, and so are we. Societies are looking for ways to streamline operations and go digital but keep the human touch, and this is what drives our product strategy. Digital customer engagements shouldn’t be used as an excuse not to offer personalised services; technology is the enabler to do both.” 

Verdin touched on the tools that SBS is building that will provide societies with a frictionless transition between digital and face-to-face engagement. “Members want to be able to start an application online, and if they have a challenge, finish it in-branch. Technology should enable that, not interrupt it.” 

Enhancing the branch experience 
 

The two societies took very different approaches with the integration of digital into their branch networks. Hinckley and Rugby were celebrating the recent release of their mobile app while Scottish Building Society spoke about the power of reinventing the branch, ensuring they retain the faces that members are used to seeing. 

One thing that is key to both societies is how technology can actively enhance in-branch experiences. Data-led insights will help to provide tailored member conversations, streamline onboarding, and simplify appointment scheduling. Verdin highlighted that “Successful innovations are those that blend the complexity into the background and create seamless experiences so a colleague can greet a member by name with context and their account history.”

Drawing on their experience, Carter and Denton agreed. The biggest differentiator building societies have over digital providers is empathy and understanding. Technology cannot understand the challenges a person is facing or how to reassure them that they are in good hands. 

However, one thing that is clear is that digital has its place in the branch evolution. Branches must be able to deliver behind transactions. It’s about relationships. It’s about connection. Branches all over the country are being redesigned to embrace and enhance this, ensuring that their presence is felt in local communities. 

Go digital, stay human 
 

Branches have a place in our high streets, but they are facing a need to evolve elements of their experience. The shifting expectations from members make this a complex challenge to face, but societies that lean into the human connection can adapt their strategies to make the branch an advantage. A digital provider cannot replace the warmth of the personal service of a familiar face in a branch. They cannot replace knowing the local community and the people in it. 

In an industry that is diving headfirst into digital transformation, building societies have the chance to take a different approach to revolutionise mortgage and savings operations. Embrace but modernise tradition. To go digital but stay human. 

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SBS platforms support over 20% of UK mortgages and £300 billion in cash deposits and most of that is with our building society customers who have seen significant growth over the years.