The mood at this year’s BSA Annual Conference was one of pragmatic optimism. While the mutual model’s heritage remains its greatest strength, the sessions made one thing clear: values alone won't suffice in 2026 and beyond. To thrive, the sector must marry its social purpose with decisive digital modernisation.
Here are the five defining themes from the frontline of the conference.
1. Regulators shift toward growth
There was a notable shift in tone from the PRA, Bank of England, and FCA. We are seeing a genuine appetite to strip away the "regulatory friction" that has historically held mutuals back. From the credit union regime review to more nuanced capital frameworks and a fresh look at AI-driven advice, the reform is finally on the table.
The goal to double credit union membership by 2035 is ambitious, but regulators seem ready to help the industry get there. The elephant in the room, however, is that better rules only go so far. Realising this growth will require heavy lifting specifically through sector consolidation and the kind of digital infrastructure that can handle scale without losing the personal touch.
2. A perfect storm for savers
The sessions on savings were among the most sobering of the conference. It is no longer helpful to look at market pressures in isolation because we are witnessing a genuine convergence of challenges. Shifting consumer habits, a persistent cost-of-living squeeze, and the looming reduction in the cash ISA limit are hitting the sector simultaneously.
Traditional deposit-taking models are being stress-tested by agile digital platforms that offer instant gratification and aggressive rates. Yet the discussions in the room suggest that rate-chasing is not the only conversation to be had. In 2026, the destination for deposits will be determined by two non-negotiable factors: trust and convenience.
For a modern saver, trust is the "why" and convenience is the "how." They want the security of a mutual that acts in their interest, but they will not fight against a clunky interface to get it. This friction is exactly what Sandstone’s Business Development Manager, Paul Davies, identifies as the primary risk to member retention.
Speaking on his recent discussions with building societies, Paul noted:
“People choose building societies for reasons that are both rational and emotional: trust built over time, alignment with shared values, and confidence in institutions designed to serve members for the long-term rather than optimise for short-term gain. That choice creates a powerful bond, but it is sustained or indeed strained by everyday experiences common across all financial providers.
We see convenience not as a technical ambition, but as a strategic expression of respect for members’ time and expectations. As we look towards 2026, the opportunity is not to substitute human connection with technology, but to ensure the two operate seamlessly together and are available, aligned to member’s needs. When intuitive, frictionless digital experiences remove unnecessary complexity, they amplify the human touch, allowing the purpose and promise of the mutual model to stand out in the market.”
3. AI: No longer a "future" tech
The data from Lloyds Bank showing 1 in 3 adults already use AI to manage their money served as a wake-up call. AI isn't a distant prospect; it’s the current baseline.
The conference moved past the hype to look at the plumbing: dynamic pricing, sophisticated data usage, and hyper-personalisation. The vision is a customer journey that anticipates financial needs before the member even articulates them. For building societies, this is the ultimate pressure point. Those who haven't invested in their data stacks will find themselves excluded from the conversation entirely.
4. The branch as a relationship hub
The branch isn’t dying, but its job description has changed. The consensus? Move the "paperwork" to digital so the people can focus on the "purpose."
We are seeing an evolution toward advice-led hubs where staff handle complex life moments rather than simple transactions. Whether through pop-up community models or permanent fixtures, building societies are uniquely placed to support vulnerable customers abandoned by the major banks, provided their digital back-end is strong enough to handle the routine stuff.
5. Weaponising the mutual advantage
Throughout the conference, the conversation repeatedly circled back to a single truth: trust is the sector's most valuable asset. In an era of economic volatility and shifting consumer loyalty, the appetite for institutions that actually prioritise their members has never been higher.
The challenge now is moving beyond the rhetoric of "being mutual" and turning that structural advantage into something tangible. This means more than just having a social purpose; it requires smarter digital journeys, radical collaboration across the sector, and a ruthless willingness to invest in what members will actually need five years from now, rather than clinging to what they needed five years ago.
Conclusion
The 2026 BSA conference highlighted a sector that is clear-eyed about the stakes. The structural foundations of trust and community are rock solid, but they need the scaffolding of modern infrastructure. The next few years won't just test the mutual model’s values; they will test its ability to execute. The signals suggest the sector is ready to stop talking and start building.
Join us at the World Credit Union Conference
The momentum from the BSA conference continues as we look ahead to the World Credit Union Conference (WCUC) in Sydney this July. We are proud to be a Gold Sponsor at this year’s annual event and would welcome the chance to connect with you there.
Whether you would like to stop by our stand to see our latest digital activations or schedule a one-on-one coffee catch-up to discuss your modernisation goals, we look forward to exploring how we can support your mission in 2026 and beyond. Click here to reach out.
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