Building societies and other types of organisation
A Building Societies Association case study

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Page 6: Conclusion

There are different types of organisations, from sole trader to plc. Each has different levels of liability, risk and benefits.

Banks are typical plc organisations, which source funds from shares and pay dividends to shareholders. 

Building societies are mutual organisations. Their members are both owners and customers. They compete with banks for their share of the market in savings and mortgages by highlighting their advantages as mutuals.  

There is a growing emphasis on the values of participation, personal service and locality in their brands. By not paying dividends to shareholders, they are able to provide more favourable interest rates and better terms for their members.  To continue serving their members, building societies need to differentiate themselves from the high street banks.

Building Societies Association | Building societies and other types of organisation
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