UK building societies are facing a convergence of pressures. Margin compression, rising regulatory expectations, and increasing competition from digital-first challengers are reshaping the operating environment.
At the same time, many remain constrained by legacy core systems that are costly to maintain, slow to change, and increasingly misaligned with modern requirements.
In partnership with Temenos, this whitepaper explores how a SaaS core banking approach, delivered through a model bank–led operating model, provides a lower-risk and more practical route to modernisation. It outlines the key drivers, the challenges building societies face, and the steps needed to transform without disrupting core operations.
Key Insights
This report helps building society leaders understand:
- Why specialist lending is reaching a critical inflection point
- How fragmentation and legacy systems constrain growth and efficiency
- The impact of Consumer Duty and operational resilience on lenders
- Why resource and cost constraints block traditional transformation
- How SaaS and a Model Bank reduce operational burden and risk
- Practical outcomes across asset finance and commercial lending
