Chair: Stuart Miller, Newcastle Strategic Solutions Ltd

Peter Neufield, EY

Daniel Rose, Doshi App Ltd

Joss Tasker, Sync Saver 

In this breakout session, our experts shared their thoughts on some of the key questions relating to the future of savings. 

1. What are the biggest opportunities for savings? 

Personalisation and customer segmentation

• Engaging on a personal level, and offering products that provide for different life stages.

• Gen Z, whilst digital first, want more personal attention, to be rewarded for loyalty and to feel financially empowered.

• Connecting with customers where they are and where you can serve them, demonstrating the value of ‘Place’ and local communities. 

• Customer segmentation by tying savings messages and products into other financial actions such as taxation. 

Customer journeys

Many choose accounts through best-buy tables, which is a poor customer experience. Seek opportunities to engage within communities, such as with local employers and payroll savings.

Education

• Savings inertia is real, how can you drive education, awareness and accessibility, building on the trust and confidence members place in their building society/credit union. 

• Mutuals are best placed to educate members but it is hard to invest in the school curriculum. Could there be a white label app for financial education? (Doshi gamify financial education, where users can earn Dosh, Experience and Rewards).

• Get into the channels that impact young people and make it relevant. Explore using social media channels to get true/accurate messages out, (e.g. TikTok) rather than leaving it to finfluencers, to pass on good financial behaviours. 

Intergenerational wealth

Encourage families to talk about family wealth and wealth sharing during individuals’ lifetime, rather than after a bereavement.

Technology

• Investigate how advanced technologies better support customer needs. 

• Can savings messages and prompts be integrated into other apps.

2. What are the threats to the building society sector in terms of savings?

• Operational resilience is key, ensuring the integrity of systems and controls.

• Fraud is a challenge, particularly in the world of AI and robotics.

• Building societies shouldn’t just be product manufacturers, they should invest and focus on their local communities and the importance of Place.

• Not moving fast enough, we need the courage to move at speed as lots of savings apps coming to market.

• Many different schemes can make savings confusing (e.g. ISAs), providing standardization and simplification is required.

• How do we help people understand stable coins and other digital currencies which don’t attract FSCS cover - finfluencers are encouraging people to move savings into Bitcoin without any real understanding or expertise.

• There remains a lack of understanding between savings and investments.

3. What trends are coming down the tracks?

Open Finance

• Potentially an exciting opportunity with a lot of digital transformation happening

• Will allow people to aggregate and view their savings anywhere, and generally mutuals should fair well as they are more ethical, better rates etc. 

• There was a separate conference session on Open Finance – you can see the notes from this session here.

• FCA is focusing on greenwashing, not an issue for mutuals, could shout more about what we do.

• Consumers are more intent driven, they want nudges and recommendations bridging them from intent to action

• Could you create a local digital sterling stable coin within your communities, something local businesses will want to sign up to.

4. What critical areas could building societies focus on to grow future membership?

• Double down on members and their local needs. 

• Go back to basics, people want to work with organisations they can trust, with products they want.

• Understand what you stand for and what makes you unique, and stick to it.

• Leverage your building society’s personality to new members, demonstrate how you bring your values life. 

• Look at how to sell products beyond rate. Focus on how products serve your community or better serve society. 

• Payroll savings would support many into a better savings habit, push for opt-out savings schemes and engage with local employers.

• Take advantage of Open Finance and use technology to make better decisions for members.