The Intermediary –- June 2026 - Flipbook - Page 48
T E C H N O L O GY
Opinion
Strategic
collaborators,
not tech suppliers
W
hen the
relationship is
working at its
best, building
societies’ tech
partners can
act as strategic collaborators, rather
than mere service providers. But the
tantalising potential also raises the
stakes. The scale of the opportunity
means you need to get it right in a way
that you didn’t 40 years ago.
Ageing platforms can create
roadblocks for growth. They are
expensive to maintain and difficult
to update – while making it nearly
impossible to integrate new digital
services. When a society is stuck
managing outdated infrastructure,
it becomes difficult to respond to
changing regulatory requirements or
growing member expectations.
A roadmap away from these
constraints does not necessarily
require a complete replacement of all
systems at once.
While the wrong partner might
charge in like a bull in a china shop,
the right one should think about
modular approaches that allow for
the gradual replacement of legacy
components. By doing so, a society
can reduce operational costs and allow
teams to focus on member service
rather than technical maintenance.
While there is a strong urge to
keep pace with larger banks, your
partner needs to help you strike a
balance and focus on the right stuff.
Solutions mustn’t be vanity projects.
They should be used to improve
customer journeys and make products
more accessible; the right partner
should help a society identify which
innovations will provide the most
value to its specific member base.
A partner that understands the
building society sector will recognise
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The Intermediary | June 2026
that technology is a tool to enhance the
human interaction rather than replace
it. This tech-and-touch approach
ensures the society remains relevant
in a digital world, without losing the
personal connection that members
value. It’s about understanding the
mutual ethos.
Cybersecurity remains a top priority
for any financial institution. As
building societies move more of their
operations online, they become more
aractive targets for cyber criminals.
A breach can cause significant
financial loss and permanent damage
to the reputation of a society.
When evaluating a tech partner, it
is therefore essential to look at their
commitment to security. This includes
not only the strength of their soware
and processes, but also their culture.
The right partner should provide a
layered strategy that includes constant
monitoring and rapid response
capabilities. They must also be able
to demonstrate that they are staying
ahead of the latest threats. Security
should be treated as an ongoing
commitment rather than a one-time
setup. By working with a partner that
prioritises data protection, a society
can provide its members with the
peace of mind they expect.
The rise of digital transactions
has also led to an increase in
fraud. Criminals are using more
sophisticated methods to exploit
vulnerabilities in banking systems.
To counter this, building societies
need technology that can identify
and prevent financial crime activity
in real time. The right tech partner
should offer advanced fraud detection
tools that use machine learning to spot
unusual paerns of behaviour.
These systems must be effective
without creating unnecessary friction
for members. Technology solutions
MEL SPENCER
is growth director at Target
Group, part of Tech Mahindra
that provide a holistic view of
transactions and member activity are
vital for managing this risk effectively.
Mutual resilience
As societies become more dependent
on third-parties, their operational
resilience has become a key part
of the society’s own risk profile.
Regulators are increasingly focused
on how financial firms manage their
relationships with external vendors.
The right partner should have a
proven track record of reliability
and a clear plan for disaster recovery.
They must be able to demonstrate
their services will remain available
even in the event of a significant
technical failure or external shock.
This involves regular testing and
transparent communication about
potential risks.
Ultimately, the right technology
partner is one that acts as an
extension of the building society
itself. By choosing a partner that
can help manage risks while
providing innovative solutions, a
building society can ensure its longterm success.
This collaborative approach allows
the society to benefit from the latest
digital capabilities while maintaining
its focus on its members. Technology
is a powerful tool for managing risk –
but it is the strength of the partnership
that determines how effectively
that tool is used. In a market that
is constantly changing, the ability
to work with a reliable partner is a
significant competitive advantage.
This relationship enables a society to
move forward with confidence as it
continues to serve its community. ●
