What is a building society? The member-owned alternative to a bank
By SendPay Business · · 2 min read
A building society is a UK financial firm owned by its members, the people who save or borrow with it, rather than by shareholders. They began in the 18th century as groups pooling money so members could buy homes, and mortgages and savings are still at their core.
How it differs from a bank
- Members own it, and usually get a vote at the annual meeting.
- There are no outside shareholders to pay, so profits stay in the society.
- By law, most of its lending must be mortgages secured on homes.
- Much of its funding must come from members' savings.
What they offer
Savings accounts, cash ISAs and mortgages are the main products. Some larger societies also run current accounts and credit cards, so day to day they can feel much like a bank.
Rules and protection
Building societies are regulated by the Prudential Regulation Authority and the Financial Conduct Authority, and eligible savings are covered by the Financial Services Compensation Scheme in the same way as bank deposits.
Where SendPay fits
SendPay isn't a bank or a building society. SendPay platforms give your customers GBP, EUR and USD accounts, transfers and branded Visa cards under your own brand, powered by licensed partners. SendPay doesn't offer lending or mortgages.
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Deposit insurance calculator →What is a credit union and how is it different from a bank?
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.