Mansion House speech demonstrates Government's commitment to double the size of the mutual economy

Robin Fieth, Chief Executive of the Building Societies Association commented:

"I am delighted the Chancellor has used her first Mansion House speech to demonstrate the Government's commitment to double the size of the mutual economy by announcing a package of measures to support the growth of the sector.

"A strong mutual sector provides choice for consumers and creates resilience for the financial sector. When you're with a mutual, you can be confident that the profits are reinvested in the business and the interests of members and communities, not hived off to external shareholders.

"We are very much looking forward to working with the new Mutuals and Co-operative Council as it begins this exciting journey."

[ENDS]

Notes

• Details of the package of reforms to be announced by the Chancellor can be found here

• 82% of bank employees said their organisation's main purpose was to maximise profits. This compares to just 23% of building societies employees[1].

• 92% of building society customers said they received good customer service, compared to 87% of bank customers[2].

• Similarly, 86% of building society customers said their provider offered them competitive rates, compared to just 76% of bank customers. The difference becomes even more evident when customers are asked if, with 73% of building society customers agreed their financial provider is an important part of their community, compared to only 46% of bank customers[3].

The Building Societies Association (BSA) represents all 42 building societies, as well as 7 of the larger credit unions. Building societies serve around 26 million consumers across the UK and have total assets of over £515 billion.
Together with their subsidiaries, they are helping over 3.5 million families and individuals to buy a home with mortgages totalling over £385 billion, representing 24% of total mortgage balances outstanding in the UK.

They are also helping over 23 million people build their financial resilience, holding over £385 billion of retail savings, accounting for 19% of all cash savings in the UK. Within this, societies account for 40% of all cash ISA balances.

With all of their headquarters outside London, building societies employ around 51,500 full and part-time staff. In addition to digital services they operate through approximately 1,300 branches, holding a 28% share of branches across the UK.