"Those that have stepped up and put people before profits have made a real difference."
One in eight adults – the equivalent of around 6.3 million people - plan to do this over the next year and 22% will be first-time building society customers.
The study was commissioned by The Nottingham, which itself welcomed 40,000 new customers in 2020.
The Covid-19 pandemic has driven more interest in what building societies offer, the research shows, with 15% of adults saying they are now more likely to take out products from a building society or other mutual.
However, customers are not just interested in getting the best deals from the UK’s building societies. Around 36% of customers said they took out products because building societies are within their local community, just slightly behind are the 37% who say it is because rates are more competitive. Around 31% said they choose building society products because they like the giving back ethos of mutuality while 24% choose societies because of the service. 14% use them because they have a say on how they are run.
The Nottingham’s research found that of those people with a product from a building society, 46% have a savings account, followed by 44% who have a current account. Around 21% have a cash ISA, 13% have insurance through them and 12% have mortgages.
Some 21% of building society customers questioned said they have four or more financial services products from a mutual.
The Nottingham’s chief executive, David Marlow, said: “I think one of the many things we’ve learnt from the last year is that how organisations support their communities really does matter. Those that have stepped up and put people before profits have made a real difference. That’s the whole ethos of the mutuality model. We are owned by our members so doing the right thing by them and our communities is at our heart.
“Last year our mutuality model allowed us to treble our charitable contributions to causes that really needed our help to support the most vulnerable within our community. We also freezed interest rates for savers and supported mortgage customers. These factors, mixed with our product offering, no doubt contributed to us welcoming 40,000 new customers to the Society in 2020.
“It is clear from our research that it’s this ethos and commitment to local communities that’s as important to customers as the products on offer.”
