Building Societies: A Unique Approach
Unlike traditional banks, building societies like Hanley Economic are customer-owned organizations. This means that our customers, over 25 million of them, are also our owners, known as members. When you take out a mortgage or open a savings account with us, you automatically become a member. This unique ownership structure ensures that our primary focus is on benefiting our customers rather than external shareholders.
Supporting Homeownership
Building societies play a crucial role in the mortgage market. In the first nine months of 2024, they accounted for 89% of all UK mortgage growth. Hanley Economic is proud to be part of this movement, helping 87,500 people take their first step onto the property ladder during this period. We continuously introduce innovative products to overcome the barriers faced by first-time buyers, ensuring that ordinary working people can achieve their dream of homeownership.
Enhancing Financial Resilience
At Hanley Economic, we believe in helping our members build financial resilience. In 2023, building society savers received £2.1 billion more in interest than if they had been paid the average rates offered by large banks. This commitment to providing better value is why building societies attracted £20.7 billion in cash savings in the first nine months of 2024, accounting for more than one-third of all growth in UK savings balances.
Investing in Communities
Our dedication to our members extends beyond financial products. Hanley Economic is committed to maintaining a strong presence in local communities. Building societies are more likely than banks to retain their high street branches, with a current share of 30% of UK high street branches. This local presence is vital, as 72% of building society customers consider them an important part of their community, compared to just 54% of bank customers.
A Message from Our Head of Products & Marketing
David Lownds, Head of Products & Marketing at Hanley Economic, shares his thoughts on our mission:
"At Hanley Economic, we have never lost sight of our purpose to help our members save and become homeowners. We’re committed to staying on the high street for those who value our face-to-face service. But we also have the tech to support our customers who prefer to work with us online, through our app, or over the phone. I am proud that our way of doing business is different from the banks. We are the original money movement, set up by ordinary working people, for ordinary working people, and to help local communities thrive. For anyone looking for a financial organization that genuinely cares about them and keeps their customers at the heart of everything they do, I’d recommend consciously thinking about who you choose to do business with. Hanley Economic Building Society, like all building societies, is here to help you make the most of your money and support your community."
The building society sector
Building societies have total assets of almost £525 billion and together with their subsidiaries, hold residential mortgages of over £395 billion, 24% of the total outstanding in the UK. They also hold £399 billion of retail deposits, accounting for 19% of all such deposits in the UK. Building societies account for 40% of all cash ISA balances.
With all of their headquarters outside London, building societies employ around 52,300 full and part-time staff.In addition to digital services, they operate through approximately 1,300 branches, holding a 30% share of branches across the UK.
The Building Societies Association (BSA) represents all 42 UK building societies and both mutual-owned banks as well as 7 of the largest credit unions.
You can find out more about building societies’ purpose and its impact here.
