As the financial services sector becomes increasingly digitised, even smaller institutions like Penrith Building Society are finding innovative ways to stay competitive with larger lenders. Despite its size, Penrith has embraced digital transformation to offer a more streamlined and accessible service for its members while maintaining its commitment to a personal, community-focused approach.
Penrith Building Society, with just one branch and approximately 10,000 customers, has maintained its fiercely independent status while adapting to the changing landscape of the financial industry. One key factor in this transformation is the realisation that digital tools can help the society extend its reach without compromising on its strong customer relationships. Louise Watt, IT and Operations Director at Penrith, highlighted that over the last two to three years, digital services have become integral to their strategy, enabling them to offer more efficient services and reach more people, particularly through online loan origination and secure messaging systems.
One of the catalysts for Penrith’s digital transformation was the shift in consumer expectations. As customers have become more tech-savvy, particularly in older demographics, Penrith recognised that it could no longer rely solely on its branch presence to service members. The solution was to create a hybrid model, combining traditional in-branch services with a robust digital offering, ensuring that customers could choose how they interacted with the society.
A significant part of Penrith’s digital strategy was the implementation of a new loan origination system, which allowed them to move away from legacy broker systems. This streamlined the mortgage application process, making it easier for brokers to submit applications and enabling Penrith to capture more business. The society also adopted the Docstribute secure messaging platform, becoming the first UK building society to do so. This innovation not only improved communication security but also reduced the amount of paper used, aligning with Penrith’s ESG goals.
Despite the challenges smaller building societies face, such as limited resources and cost constraints, Penrith has leveraged its agility to benefit from partnerships and technologies that suit its needs. Being small allowed the team to quickly adopt and implement new tools without the extensive deliberation often required in larger organisations. For instance, Penrith’s move to digital has helped them to stay efficient and responsive, even while introducing new products like fixed-rate bonds, which would otherwise be too resource-intensive to handle manually.
Looking ahead, Penrith’s ongoing digital transformation is part of a three-year plan that will allow the society to continuously improve its services and enhance operational efficiency. The long-term goal is not just to keep pace with larger lenders but to maintain their unique position in the market as a personalised, community-focused lender that uses technology to enhance rather than replace customer relationships.
Penrith Building Society’s journey shows that digital transformation doesn’t require size or volume to succeed. With strategic investment in the right tools and a commitment to blending tradition with innovation, smaller institutions can keep pace with their larger counterparts and even outperform them in certain areas. Through its digital transformation efforts, Penrith is poised to continue offering value to its members while preserving the essence of its independent, community-oriented ethos.
