Reflecting on the 2025 BSA Conference - Modernising the Mutual
Having returned from the BSA Conference 2025, it was clear that building societies are navigating a critical juncture - balancing their relationship-led service models while addressing the urgent need to modernise outdated systems and improve operational efficiency. Given the current geopolitical climate, and the increasing pace of innovation, developing a strategy that not only solves immediate challenges, but offers sufficient scope to tackle future issues, can often seem like a moving target.
In an era defined by digital expectations, evolving customer behaviours, and rising operational pressures, building societies face a pivotal moment: modernise or risk irrelevance. This year's Conference reinforced just how urgent this transformation is.
Technology leaders emphasised the strain legacy systems place on growth, agility, and service quality. Systems nearing end-of-life can no longer support the complex demands of modern mutuals, nor can they scale to meet the expectations of their digitally savvy members seeking seamless, personalised experiences.
It was extremely encouraging to hear from numerous mutuals who are not only acutely aware of this, but are actively working to develop a new breed of personalised experiences for their members, phasing out end-of-life systems in favour of truly futureproofed alternatives.
So, let's explore what this process of modernisation looks like in practice…
Define a Target Operating Model and build towards it
Growth is hard without modernising what we've inherited.
Iain Stacey
Many societies fall into the trap of lifting and shifting existing inefficiencies into new systems. To avoid this, any successful transformation initiative begins by establishing its Target Operating Model - a society's ideal members, the channels it plans on engaging them through, and the outcomes it wishes to deliver. A rigorous analysis of its existing systems and processes should then be conducted. This can be used to establish a clear picture of where the society is versus where it needs to be, followed by a comprehensive project roadmap for closing that gap. This is the first step towards true, futureproofed modernisation.
Consider the whole digital ecosystem, not just the core
One of the biggest takeaways from the Conference was that simply updating core banking platforms alone isn't enough, as the highly integrated nature of modern enterprise infrastructure means this is just one part of the picture. To deliver personalised member experiences, all the peripherals need to be considered, in order to maximise performance, security, and scalability. This includes network infrastructure, security frameworks, Cloud platforms, and digital channels.
Moving from manual to managed
As Iain Lister noted at the Conference, "you can't keep adding people" to solve systemic issues, as this will only compound operational inefficiencies when new staff are added in an attempt to fix them. Instead, consider the value of managed services, delivered by a trusted technology partner who can work as an extension of internal teams to:
- Consolidate IT support into a single SLA-driven partner model
- Automate monitoring and patching to reduce risk exposure
- Eliminate duplicated effort across legacy silos
- Reallocate internal teams toward strategic, member-facing projects
Resilience is everyone's responsibility… right up to board level
All the high-profile breaches dominating the news cycle at the time of writing have only reinforced the need for the very highest standards of operational resilience, with members demanding reassurance that their critical data is protected. Debbie Crosbie - Nationwide's CEO - offers a stark warning to attendees at the Conference that any mutuals who are not willing to secure their futures in this way inevitably risk being left behind.
There's no doubt that the numerous elements that make up robust resilience present a considerable challenge for internal IT teams, but this is another area where managed service providers can really demonstrate their value through:
- A managed Security Operations Centre, providing 24 / 7, real-time monitoring of the entire IT estate, enabling a more proactive approach to security.
- A unified network and security approach, enforcing a Zero Trust access control model, based on identity and context in hybrid working environments.
- Effective disaster recovery systems and processes delivered through an as-a-service model, ensuring critical data and infrastructure can be restored as quickly as possible in the event of a breach, in line with FCA and PRA regulations.
- Integrated platforms for omnichannel communication and collaboration, ensuring a seamless experience for every member, however they choose to make contact.
In summary…
The 2025 BSA Conference made it clear: the sector's future is bright, but only for the mutuals willing to modernise with purpose. By fully embracing modernisation and phasing out cumbersome legacy systems in favour of integrated platforms, mutuals can truly support and maintain a member-first approach.
Exponential-e have been supporting building societies along this journey for years, combining an evolving solution portfolio with a keen understanding of the sector's unique challenges and member-first culture. We're ready to listen, so whether you're overhauling your core, transforming your branch operations, or looking to do more with less, get in touch!
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Exponential-e is a trusted technology partner for organisations across the Finance sector, offering innovative solutions that drive security, compliance and optimal performance at all levels.
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