How long does it take Building Societies to update products on the back of rate changes?

Rapidly responding to market rate changes is critical for staying competitive, maintaining commercial stability and demonstrating that you are doing the right thing for your members.

• Speed matters: Being swift in updating your product offerings to reflect rate changes is critical for competitiveness and member trust.

• Streamlined processes and controls: Implement a robust process with as much automation as possible for rate changes, product updates, and documentation to minimise human error and save time.

• Continuous monitoring: Measure the time it takes from the rate change decision to the actual product update.

• Efficient workflow and approvals process: Ensure end-to-end workflows with correct approvals, audit logs and governance is in place, enabling clear extractable data for regulators.

"Product pricing complexity demands precision. For lenders on legacy systems re-pricing can take 10 working days to implement. Amidst weekly rate changes, products may be pulled without new pricing ready. Speculative re-pricing adds risk. Margin risk is a billion-pound concern - without the required agility, a single misstep can be costly!" - Tim Hague, Industry Expert

Are Building Societies able to quickly offer new products to best meet the needs of members?

Building Societies can distinguish themselves and thrive in a competitive market by introducing innovative products that meet the evolving needs of their members.

• Product and proposition development: Establish an internal capability to scan market trends, assess member needs, and continually get member feedback to rapidly design new products and propositions.

• Technical configuration: Embed systems and tools that allow new products and enhanced product parameters to be configurable via business teams and auditable to regulators, rather than requiring extensive code changes across platforms.

• Technical integration: Establish a technical landscape that allows for seamless and secure integration with third parties that can enhance existing product offerings, or support the development of new innovations.

• Operational capacity: Ensure there is sufficient operational capacity available to support the introduction of new products, and be aware of current capacity levels supporting exisiting products.

"Changing product pricing in the evershifting market is a complex challenge for Building Societies. The margin risk is significant, and introducing new products can be a real gamechanger. While operating in unique niches, the key lies in staying ahead with innovation and differentiation to succeed in this competitive landscape." - John Williams, Industry Expert

How do Building Societies know that they offering the right products to customers, and ensuring good customer outcomes?

• Customer understanding: Do you have a comprehensive view on customer personas and how each product you offer resonates with each customer persona differently?

• Product strategy: Does your product strategy deliver long-term value to both the society and its members, and can you identify underserved market niches and tailor solutions accordingly?

• Monitoring and evaluating product outcomes: Do you have mechanisms to track and evaluate how customers are using your products and that they are achieving the intended outcomes?

• Vulnerability identification: Are you able to identify vulnerable customers and tailor servicing accordingly, ensuring that your products are accessible and beneficial to all members?

"Our Society aims to offer modern digital services and a diverse range of products, while remaining true to its mutual ethos." - Will Carroll, CEO of Monmouthshire Building Society

It’s not just speed to market with products, it’s about having control of new products to update them in real time post launch.