“All 63 building societies in the UK are committed to remaining mutual. Building societies and other mutual life offices have continued to show that mutuality is not only a viable business model, but one which delivers real benefits to members. Both societies and mutual life offices appear regularly in the top of the performance tables. This is due to the fact that plcs and demutualised institutions have to pay dividends to shareholders. Someone has to pay for this, and it is often the customer through higher costs and hidden charges.”
Commenting on mutuality in the House of Commons recently, Ruth Kelly MP Financial Secretary to the Treasury said;
“Let us consider the mutual sector and the Government's view of mutuality. The Government believe that financial mutuals have specific, distinct advantages since they do not have shareholders to whom they have to pay dividends. They can therefore deliver greater value to their members, either through higher returns to investors or lower interest rates to borrowers or both. The additional competitive pressures that diversity of ownership creates in the marketplace can deliver benefits to investors in mutuals and non-mutuals.”
