As fintech specialists, we see trust as the linchpin that links the build society sector’s appetite for innovation with the realities of adoption; their trust in new technologies, balanced against their ability to change while keeping their core identity.
Here I reflect on what I heard and discussed during the 2025 BSA conference, and explore how trust plays out across the key trends shaping the industry.
How is tech adoption changing for building societies?
Building societies are moving away from monolithic, “one-size-fits-all” technology stacks in favour of best-of-breed solutions. On the surface, this is a welcome shift: it opens the door for mutuals to benefit from the high-impact innovation that fintechs bring to the table. The reality, however, is more nuanced.
The market is now awash with vendors offering modular solutions - often as loss leaders in hopes of winning bigger deals down the line. While this can accelerate experimentation, it also risks creating a fragmented landscape of point solutions that don’t always play nicely together.
For both societies and their partners, the question becomes: who do you trust to deliver not just a product, but a sustainable, integrated solution that gets to the heart of your members’ needs?
This is where the trust barrier looms largest.
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Failed implementations: The sector is still carrying the scars of failed or reversed implementations - projects that promised transformation but instead delivered disruption, unbudgeted cost, and uncertainty.
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Proof of concept: Consequently, for many building societies, seeing is believing. Before committing to a new system or approach, proof that it works in your specific environment is a pre-requisite.
Building societies want to make things better, but the fear of realised risk is as strong as the desire for change. In such a tug of war, trust both between societies and technology partners, and in the building society’s own capabilities is ultimately what will determine which side of the innovation line a society will fall.
The Litmus test : AI
Nowhere is this dynamic more visible than in conversations surrounding AI.
The BSA’s recent report with WhiteCap Consulting highlighted that investment in technology, with a focus on AI would be a key influence on the sectors’ future progress. While most acknowledge the significant potential in AI, as in many industries, few had a clear roadmap for adoption.
The sector knows AI can drive efficiency, automate routine tasks, and personalise member experiences. But there’s a healthy scepticism:
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What does it actually look like in practice?
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Can it be implemented safely, ethically, and in a way that enhances rather than erodes the mutual ethos?
The answer lies in incremental implementation. Rather than betting it all on sweeping AI transformations, building societies should focus on small, manageable pilots - think AI-powered document verification, or smarter member communications that improve the customer experience.
These targeted projects can be incredibly successful in themselves and in building the business case for future AI developments through:
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Building trust internally,
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Demonstrate tangible value, and
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Providing the case studies needed to overcome wider industry hesitation.
Lenvi's AI innovations
Read our recent article discussing how Lenvi is actively embracing AI to enhance our operations, services and technology solutions provided to clients.
Renovating the homebuying process
If trust is the foundation, then the homebuying process is the proving ground.
The current homebuying process in the UK is in need of renovation – tied up in complexity, delays, and poor communication – yet there lacks a coordinated effort to fix these systemic issues.
The reality is that building societies alone can’t solve the pain points of homebuyers; too many other parties are involved.
Here’s where incremental improvements can support building societies to make a difference. Faster document verification, clearer communications for buyers, proactive follow ups to ensure they got the support they needed, or smoother handoffs between lenders and conveyancers – can really set a building society apart in a crowded market where customers feel unseen.
Yet, as building societies embrace new technologies and even AI to drive these improvements, it’s vital to remember that the real impact comes when digital solutions and human service are working in harmony. Together creating a seamless experience that provides the reassurance and clarity during such a significant life event.
Without this alignment, even the most advanced tools can fall short of delivering a truly positive, trustworthy experience.
A recent homebuyer’s experience
Just a few days after the conference, I spoke with a colleague at Lenvi navigating their first home purchase. Their deposit was in a building society account, and they needed to bank a final cheque and close the account to complete the purchase.
They followed the advice in their building society’s app and made a special trip to their local branch to take the required actions, only to encounter conflicting information and multiple return visits. When they finally turned to the society’s AI-chatbot, the issue was resolved in minutes.
The technology in this situation solved the issue for the customer, but at a point where they were already confused, frustrated and lost trust in the right way to do something.
What this story highlights is that even the best digital tools can’t compensate for inconsistent service or unclear processes. Incremental changes - like empowering branch staff with up-to-date information, ensuring digital and in-person channels are aligned, and proactively communicating next steps can transform a stressful moment into a positive, trust-building experience.
In a market defined by major life moments, these small improvements are what truly set a building society apart.
For building societies, the “so what?” is clear: making life easier and clearer for homebuyers is the surest route to member loyalty and growth.
Concluding thoughts
As the UK Building Society sector celebrates the 250th anniversary since the creation of the first society, the sector finds itself at an interesting crossroads. Recent leadership changes across the sector are bringing fresh ideas, which could lead to bigger changes and more learning. The appetite for change is there, but so too are the challenges associated with execution and trust.
As fintechs, our role is to partner and support building societies and the mutual sector to prove the value of innovation, one successful project at a time.
Read our Generation Gap report
Exploring innovative solutions for building societies and mortgage lenders, our recent report looks at the impacts of the UK's ageing population on homeownership and how lenders can respond
