In this blog we focus on the important and evolving role of the branch within the building society sector, a topic covered in a chapter of the report that was sponsored by unblu.
Chapter Summary: Branch of the Future
The number of building society branches has seen a slight decline since our last report. However, this trend has been largely driven by larger societies restructuring their branch networks, while several smaller societies have actually increased their branch numbers, bucking the broader trend of high street closures, predominantly by banks. But the larger societies also continue to value their branches, as illustrated by Richard Fearon, CEO of Leeds Building Society:
“We’re deeply committed and cherish our branch network. We’ve even opened a new branch, and we’re in the process of refurbishing every single one.”
Branch Purpose and Performance
Branches continue to serve as valuable strategic assets in many societies. While digital adoption is increasing, branches remain essential for maintaining brand presence, delivering community value, and engaging customers. CEOs stress that branches contribute not only to service delivery but also to business performance and cultural cohesion.
Simon Taylor, CEO of Melton Mowbray Building Society, told us:
“Branches are not big income generators. It’s more about supporting our membership and engaging with the community which as a mutual is fundamental to our purpose.”
Evolving Operating Models
Most building societies are moving toward hybrid operating models that blend digital capabilities with face-to-face services. Some are reducing the number of branches or consolidating operations, but nearly all maintain some form of physical presence. The emphasis is on ensuring that branches are productive, relevant, and cost-effective. Additionally, many societies have integrated branches within their wider operating model, and are using them for additional bandwidth and as specialist hubs.
Julie-Ann Haines, CEO of Principality Building Society, explained how they are tackling this:
“We’ve moved a lot of the calls and work that were being done in a central customer services teams out to our branch teams, so today they are not just providing in-branch services but are also supporting members in other ways right across the UK. This shift has removed significant cost and has enabled us to maintain our commitment to high streets through to 2030.”
Customer Expectations
Branches remain popular with certain customer groups, particularly older demographics. Many societies are redesigning branch spaces to offer more advisory services, increase accessibility, and reflect modern banking expectations.
Staff Roles and Culture
As branches evolve, so do staff responsibilities. Traditional teller roles are giving way to relationship-focused positions requiring broader skillsets. Upskilling and cultural alignment are critical as societies continue to modernise while retaining their service ethos.
Branch Technology and Innovation
The focus on branch evolution has been on modernisation of the environment, creating more appealing and comfortable spaces. Technology can enable branches to provide a better and more efficient service, rather than pushing members towards the use of digital or automated services, but although technology investment is a key priority for building societies, there has not been significant technology investment in branches themselves. Societies are, however, introducing innovations such as digital appointment booking, paperless processes, and real-time customer feedback tools. These upgrades aim to improve the overall member experience and make branches a seamless extension of online platforms.
Richard Ingle, CEO of Bath Building Society, summarised the evolution in simple terms:
“In our branches we are delivering the same service in but in a more modern environment.”
Investing in Community Hubs
Some societies are repositioning branches as community hubs that deliver social value as well as financial services. This is especially relevant in towns where the building society is the last remaining financial provider. These branches often partner with local groups and events to reinforce their community role and maintain footfall.
Darren Ditchburn, CEO at Vernon Building Society, explained it as follows in the report:
“The branch of the future isn’t just about transactions it needs to evolve into a community engagement hub. We’ve got a large community space that’s available, where people can come and connect. We offer tea and coffee, digital facilities, and we have a range of groups that regularly use this facility free of charge.”
What next?
A key strategic question for building societies is whether declining branch use is generational or linked to life stage. Understanding this distinction is critical. Societies need the insight to strike the right balance between investing in digital, branch use, and their future strategy.
As high streets are suffering, branches can play a key role as community hubs. By embracing multi-use spaces, from financial advice to local events and support services building societies can improve and broaden their offering, whilst revitalising the places they serve.
This is Blog 4 in our nine-part series covering the Building Societies Report 2025. You can explore the full series here:
- Blog 1: Strategy & Mutuality
- Blog 2: Mortgages
- Blog 3: Savings
- Blog 4: Branch of the Future
- Blog 5: Homebuying Process
- Blog 6: Green Finance
- Blog 7: Diversification & Collaboration
- Blog 8: Technology
- Blog 9: Regulation, Policy & Risk
The Building Societies Report 2025 was created in partnership with the Building Societies Association and made possible by the support of sector sponsors including: BJSS, Digilytics, Finova, FintechOS, FIS, GDS Link, Mambu, Mast, Monument Technology, Mutual Vision, MQube, nCino, Ohpen, PEXA, Phoebus, RSM UK, SBS, Target Group, Temenos , Unblu, Unisys, and Vilja Solutions.