Building societies have never been more important. They provide around one in three first-time buyer mortgages and continue to support borrowers throughout every stage of homeownership. Yet despite their relevance, many younger consumers would struggle to explain how a building society differs from a bank.

That highlights a key challenge facing the sector. It’s not one of relevance, but visibility.

While mutuals remain deeply valued by existing members, the qualities that make them distinctive are not always fully understood by younger generations. At the same time, customers of all ages increasingly expect the seamless digital experiences they receive from banks and other service providers.

The opportunity for building societies lies in communicating their value more effectively while continuing to evolve the services they offer. In my view, that starts with understanding customers better.

For generations, societies have built trusted, long-term relationships with their members. As a result, they possess a wealth of insight into customer behaviours, life stages and financial needs. The opportunity now is to use that information more effectively, not simply to improve operational efficiency, but to create more relevant and meaningful member experiences.

When used well, data helps societies understand how different generations engage with financial services, what channels they prefer and which messages resonate most strongly. A first-time buyer researching affordability online, a family remortgaging while managing rising household costs and a retiree considering later life lending are all likely to have very different expectations and communication preferences.

The answer is not replacing one channel with another. Rather, it is about delivering a connected experience regardless of how customers choose to engage. Whether interactions take place over the phone, online, through an app, via an intermediary or in a branch, they should feel joined up. Customers should never feel as though they are starting from scratch.

Consumer Duty has rightly raised expectations around understanding customers' needs and delivering good outcomes. For building societies, however, this should be seen as more than a regulatory requirement. It is closely aligned with the principles of mutuality that place members at the heart of decision-making.

By making better use of customer insight, societies can tailor products, services and support to individual circumstances. This not only helps deliver better customer outcomes but also creates a genuine competitive advantage. The better a society understands its members, the better equipped it is to anticipate needs, strengthen loyalty and support customers throughout their financial lives.

However, understanding existing members is only part of the equation.

If building societies are to grow and overcome generational divides, they must also become better at communicating their value to future members.

Most consumers do not choose a financial provider because of its ownership structure alone. While mutual status may matter to some, most people ultimately gravitate towards organisations that make life easier, understand their needs and deliver value. The mutual model is what enables building societies to do exactly that. The opportunity lies in telling that story more clearly and demonstrating it consistently through every customer interaction.

Technology has an important role to play. Its value lies in enabling societies to connect data, reduce friction in customer journeys and deliver consistent experiences across every touchpoint. Done well, it allows organisations to deliver the right message, through the right channel, at the right time, helping members feel understood and supported.

Building societies are also uniquely positioned to support members across generations. From helping a young person save for their first home, to supporting families as they move up the property ladder and guiding older borrowers through later-life lending decisions, societies often build relationships that span decades.

As housing wealth becomes an increasingly important part of financial planning, there is an opportunity for building societies to play an even greater role in supporting financial resilience and helping families navigate major life decisions across generations.

Ultimately, bridging the generation gap is not about choosing between traditional service and digital innovation. Nor is it about prioritising one group of members over another.

It is about understanding people well enough to communicate what matters to them, delivering experiences that reflect their needs and demonstrating the enduring value of mutuality in ways that resonate today.

Building societies do not need to reinvent themselves to appeal to younger generations. The values that have underpinned the mutual sector for generations remain highly relevant. The challenge is ensuring those values are experienced consistently, communicated clearly and delivered through the channels customers expect.

Those societies that succeed will not only deepen relationships with existing members but also inspire a new generation to discover the benefits of mutuality for themselves. That is how the sector grows: not by changing what makes it different, but by ensuring more people understand the value it has always offered.