Building societies and banks in the UK often offer similar products, with building societies traditionally focusing on mutual saving and home-buying support. Unlike banks, which aim for profit and are shareholder-owned, building societies are member-owned, allowing customers direct influence in decision-making. They held 19% of all cash savings as of September 2023, signifying their substantial role in the finance sector.
Originating in 1775, building societies allowed working-class citizens to pool resources to acquire homes. Although their numbers have dwindled from 1,723 in 1910 to 42 today, key players include Nationwide and Leeds Building Society. The debate between building societies and banks continues, hinging on individual financial needs, with building societies generally offering higher savings rates.
- Building societies have a member-focused approach, unlike for-profit banks.
- They were pioneers in offering home-buying solutions for the working class.
- Despite reduced numbers, they remain vital in savings and mortgage markets.
For those in Nigeria and cities like Abuja or Lagos, considering localised versions of building societies could diversify financial landscapes, providing mutual benefits. Are building societies an appealing model for expanding financial access in your community? Share your thoughts on how this mutual model could thrive in different regions. For more details, please visit the original source.
