Hamza Behzad, Business Development Director
Over the past 12 months, retention has gone from a back-office efficiency play to a front-line strategy for growth among building societies.
This is just one of the findings from our new research whitepaper, Retentions & Technology: How Mutual Lenders Can Drive Growth Through Digital Innovation. Based on interviews with CTOs and senior decision-makers across the UK’s mutual sector, the report reveals how technology is reshaping the way societies retain, serve, and grow their customer base.
🚨 The retention imperative
As product transfer volumes now outpace external remortgaging, retention has taken centre stage. According to UK Finance’s 2024 Household Finance Review, 1.4 million borrowers opted for a product transfer, compared to just 284,000 remortgages. This stark contrast reflects borrower preferences for ease, speed, and rate certainty over switching lenders.
For mutuals, this isn’t just a convenient trend—it’s a strategic opportunity. Retaining existing borrowers at deal maturity reduces acquisition costs, improves operational efficiency, and plays a crucial role in capital preservation and long-term independence.
🧠 A tech challenge with human consequences
Despite this urgency, many lenders still face considerable hurdles in building digital retention journeys that truly work. Among the biggest challenges uncovered in our research included:
- Disconnected legacy systems
- High replatforming costs
- Data fragmentation and migration risk
- Limited in-house resource
- Concerns over customer adoption
In many cases, mutuals are trying to modernise without disrupting the customer relationships and trust that set them apart from larger competitors. That’s not easy—but it is achievable.
⚙️ Personalisation is the new table stakes
One of the strongest insights from our research is that there’s no one-size-fits-all customer journey anymore.
Younger customers expect slick, self-serve digital tools—especially for savings. Meanwhile, mortgage borrowers still value personal advice, but increasingly want the flexibility to switch online when circumstances are straightforward.
The most successful lenders are those who offer choice: fully digital switching journeys for simple cases, adviser-assisted routes for more complex needs, and hybrid journeys that integrate brokers into the process.
💬 What CTOs are saying
“Retention has gone from an operational consideration to a board-level priority.”
“Getting legacy data cleaned up is essential before making any tech decisions.”
“Our members want both: personal service and the option to go online when it suits them.”
🔍 Key takeaway: Retention is where digital delivers fastest
Among all areas of lending and savings operations, digital retention journeys consistently deliver fast ROI. From reducing manual admin to shortening processing times and enhancing compliance reporting, lenders are seeing tangible benefits from targeted upgrades in this area.
For mutuals, that means smarter systems, lower costs, and better outcomes—for borrowers, brokers, and the business.
📘 Read the full report
Download the full whitepaper to explore how mutuals are using technology to future-proof their retention strategies and enhance operational resilience.
