The replies of an opinion survey of building society chief executives, published by the Building Societies Association (BSA), showed a high degree of optimism among building societies’ chief executives and a determination to meet the challenges ahead.
Many societies see their future in diversification and developing niche markets. Smaller societies see their size as a positive advantage – they are more easily able to adapt to customer needs and new market opportunities.
Other societies see the Treating Customers Fairly (TCF) initiative as a good opportunity to differentiate themselves from their competitors. One chief executive said that his strategy was to continue “to provide excellent service when so much of the competition fails to do so”.
There are of course challenges. One building society chief executive summed up the replies of many saying that “remembering to do business while dealing with regulation” was the main challenge facing his society in the year ahead.
Another chief executive raised concerns about the ‘one-size-fits-all’ approach to regulation, urging the FSA to “tailor regulatory intensity to reflect real risks to the market”.
Adrian Coles, director-general of the BSA, said: “I am encouraged by the many opportunities building society chief executives see for developing their business.
“TCF, the Child Trust Fund, diversification and developing links with other mutuals and charities all featured among the replies of the vast majority of chief executives, who were optimistic about the year ahead.”
