Sarah Harrison, Chief Executive of the Building Societies Association gave her first speech to the Building Societies Annual Conference, on Wednesday, 29 April.
Good morning everyone.
It is an absolute real privilege to be here, for the first time, as Chief Executive of the Building Societies Association.
I want to begin with why I’m here and some of my reflections over the last few months.
I’ve spent much of my career working in regulation, always on the side of consumers, because strong markets only work when people genuinely come first. In government, my focus was on people, on talent, on productivity and on delivery: through this making sure every pound of taxpayers’ money worked as hard as possible for citizens. Both these resonate hugely with what this sector stands for.
But this role is also personal for me.
I’m a farmer’s daughter. I grew up in a family business. I come from a tradition that helped make member‑owned organisations a success. And I’m a mum to two daughters who are at the early stages of their careers in financial services and finance. I want this part of our economy to be one that is open, inclusive and ambitious for its people and their potential.
That belief, in purpose, in the mutual model, and in building a sector that works for the next generation are the things that drive me. And as the BSA’s first female CEO, it’s why I’m so excited to work with you to deliver strong, sustainable growth for this sector, for the future.
A sector that is delivering real purpose.
As I’m discovering, this sector is already delivering on its purpose.
Together, you serve more than 27 million customers and steward around £680 billion in assets. That is a doubling of this sector over the last decade.
Every day, you help people save with confidence, build resilience, and secure a place to call home.
And that has never mattered more than it does today.
Across the UK, people are facing a number of challenges.
First, financial resilience is under pressure.
The cost‑of‑living crisis continues, with the impact particularly acute for younger people. Almost half of 18‑24 year olds do not have a savings account[1], and two‑thirds expect to be worse off than their parents[2].
Inflationary pressures - including from conflict in the Middle East - will only add to this strain.
Second, secure homes feel out of reach for too many.
While this sector leads in supporting first‑time buyers, there are a third of aspiring buyers who now believe they will never own a home[3]. For renters, confidence is even more fragile, with far fewer feeling able to meet housing costs in the months ahead[4].
Trust in institutions is fragile.
Three‑quarters of people say they are unwilling to trust those with different values to their own.[5] At the same time, younger adults increasingly judge organisations by the impact they have on communities and society[6].
These are not abstract challenges. They shape real decisions - whether people can pay a bill, build a buffer, or believe they have a stake in the future.
That’s why mutuals matter now.
That is why building societies and credit unions matter now.
You are uniquely placed to help people save, start small, build habits, and grow confidence and resilience over time.
Nearly half of all the mortgages you provide are to first-time buyers and one in three of all first‑time‑buyer mortgages across the market come from you[7]. You also enable responsible lending in the private rental sector. Where others optimise for volume, you focus on the person and find responsible ways to be able to say ‘yes’.
Being owned by members - not shareholders - enables long‑term thinking. Being rooted in place and community, builds connection, accountability and establishes trust.
So my first message this morning is simple:
The UK needs a strong, modern mutual alternative - to rebuild resilience, support home ownership and restore trust.
And we are that mutual alternative.
Which means this moment is not just an opportunity - it is a responsibility.
In an economy seeking stability and a society looking for trust, the mutual model is not a legacy of the past - it is a very practical, a very modern solution to today’s challenges.
What I’ve seen so far on my tour.
Five months into the role, I’ve deliberately spent time with societies and credit unions across the UK - listening, learning and seeing the sector in action.
Three things stand out.
First is your impact on people’s lives.
I’ve heard stories of care and professionalism from extraordinary teams in your branches. From guiding the homebuyer through life changing decisions in Newbury, to working in West Brom and Cardiff to prevent scams, supporting grieving families face to face - not via a link or phone - in Cambridge and Bath.
Working with young people in Salford, and beyond,
Providing support for people into work, financial education in schools, tackling youth homelessness, providing dementia care and much, much more besides.
These are not transactions. This is public service - built on your ethos, the empathy of your people and a strong sense of doing the right thing. The sector should be exceptionally proud of this.
Second is the ambition of your leadership.
I’ve met board members and executive teams thinking seriously about growth, relevance and long‑term delivery.
Innovation that is extending your impact.
From diversification at the Melton, Skipton and Cumberland; AI‑enabled mortgage decisions at the Nottingham, capability building at the Leek and Scottish; mobile apps extending reach at Monmouthshire; pioneering CUSOs in Glasgow and the thoughtful deployment of technology and AI at Coventry, Leeds, Yorkshire and Nationwide. All that enhances personal service.
What stands out just as strongly is your openness. A genuine willingness to share, learn and collaborate. That is this sector’s superpower - at least one of many - and a platform for future progress.
The third thing I’ve seen is the realities you are managing.
Behind the purpose sits real pressures - rising fixed costs, increasing capital and investment demands, and squeezed margins - while not unique, they are particularly acute challenges among the smaller societies.
Taken together, this tells me the sector is at a pivotal point.
We have momentum and opportunity. This Government has a real commitment to growing the mutual sector and regulation is beginning to move in a more helpful direction.
But headwinds remain - from the scale of investment required, to intensifying competition for savings and in mortgage lending.
So my second message today is this:
What got us here will not be enough to take us forward.
Now is the time for clarity, for confidence and for collective action.
I see two priority areas.
First a focus on delivering good growth
Growth that is sustainable.
Growth that reaches more people with more services.
And growth that delivers real outcomes - today and for future generations - while also creating the conditions for new entry.
This means seeing ourselves not just as product providers, but as long‑term partners in people’s financial lives, where money matters. For example, to support security, enabled shared prosperity across generations, build financial literacy and confidence and extend financial inclusion and trust.
Good growth also means evolving how services are delivered. Customers expect seamless digital journeys alongside trusted human support - not one or the other. That requires sustained investment in technology, data and, critically, transformation skills.
We’ve heard a lot at this conference about AI and emerging technologies because it offers real opportunity - faster and lower cost transformation, increased productivity, quicker decisions. Banks are targeting significantly lower cost-to-income rations through AI. Standing still is not an option.
Which brings us to a harder truth.
In a capital‑constrained environment, to enable good growth and maintain resilience, scale will matter more than ever.
For some societies, scale will come through organic growth or diversification. For others, through consolidation. For many, deeper collaboration - in non‑customer‑facing areas, to bear down on fixed costs, could be the opportunity: shared platforms, shared security, shared procurement, shared capital, shared ways to support talent and build new skills. Shared ways of deploying AI.
These are not compromises, and they do not necessarily mean a loss of identity or community connection. They may not be decisions for today - but they will come. They are strategic choices for boards, and they are within your control.
But even the strongest strategy for good growth needs the right external environment.
That is why we need stable, joined‑up government policy on savings, housing and growth - and fiscal policy that supports long‑term investment. It means removing out-dated caps on growth in legislation, and helping the sector to improve access to capital, including exploring new approaches where that may be possible.
Good growth also requires a regulatory framework - rule‑making and implementation - that genuinely values the diversity, because we bring financial stability, competition, innovation and financial inclusion.
This is not special pleading. We want strong regulation. It is about levelling the playing field to unlock potential.
The second is relevance for future generations
What we offer.
How we serve.
And what we stand for.
Mutuality should be our greatest strength - yet too often it is invisible or not understood.
We must make it visible, meaningful and modern.
For younger consumers, particularly Gen Z, the distinction between banks and building societies is not automatic. They are digitally fluent, cost‑conscious and sceptical of institutions.
But building societies and credit unions can resonate - and that will be through simplicity, value, fairness, transparency and credible social impact.
So we must double down on the outcomes and we must double down on mutuality and what it delivers - and tell that story clearly and confidently.
I don’t pretend to have all or any of the answers here. But I do want us to be bold - and to consider together what it will take to make this happen.
If we get this right, this sector does not just endure. It will lead. And if it leads, the UK will be stronger for it.
So my final message today is:
The opportunity is real - and it is ours to seize.
We can drive good growth, reach more people with more services, and have greater impact than ever before. And policy and regulation must enable ambition like this to thrive.
So the role of the BSA in all of this?
Our role is simple: to turn ambition into action.
We are developing a future‑focused strategy - with you, not for you - centred on what will make the biggest difference to sustainable growth, and the role of the BSA as part of that in the future.
- We will champion your interests with government and regulators in a pragmatic and solution focused way.
- We will push consistently for proportionate, growth‑supporting regulation.
- We will work to convene and connect, in any way, anywhere you like. Bringing you together wherever collaboration adds value and interests are aligned.
- We will work in practical partnerships with our associates, suppliers, fellow mutuals and international peers - to learn, benchmark and share what works.
- We will work with you, in the best way, to raise awareness of the purpose of the sector and the difference it makes
In short, we will be focused, practical and outcomes‑driven.
Conclusion
I have learned a great deal from the people I’ve already spoken to - and I want to hear from many more.
Many of you offered the same advice:
Be authentic.
Be bold.
Be curious.
And keep doing what you’re doing.
And I, and the BSA team, will do our utmost to live up to that - because I am excited, energised and overwhelmingly positive about what we can achieve together.
Thank you for your attention. Please continue the conversation, help shape the strategy we are building together - and above all, enjoy the rest of your conference.
