“Mutuals don’t depend on share prices”
In the current economic climate, mutuals are more important than ever. They are a dependable rock within the financial services industry – more trusted than shareholder owned businesses, whose reputation among the public has collapsed.
Mutuals are trusted because they exist to serve their members rather than to generate profits for shareholders.
Profits generated from this business are then shared among the member-customers rather than with external shareholders. This profit is distributed through lower prices and dividend payments to members.
By not having to pay profits to shareholder investors, mutuals remain consistently at the top of best buy tables for financial services. The Building Societies’ Association has estimated that this provides building societies with a cost saving of approximately 35%.
The government should be positive about mutuals as a responsible and reliable part of the financial services industry.
