The Importance of Community Engagement for 21st Century Mutuals
Claire Deekes, Chief Customer Officer at The Cumberland Building Society
Mutuals play a crucial role in the lives of the people they serve, providing accessible financial services and fostering community-centric values. In fact, people are at the heart of everything a mutual stands for; they empower individuals with opportunities for homeownership and savings while reinvesting in the communities they serve.
Building societies have stood the test of time. As one of the oldest building societies still in existence, this year The Cumberland is celebrating serving its own community for 175 years. However, with society ever evolving and ongoing financial difficulties posing issues for many, how can mutuals continue to operate with profitability whilst retaining their dedication to the communities they serve?
At The Cumberland, through our Kinder Banking commitments to People, Planet and Community, we firmly believe that fostering robust community engagement and forging strategic partnerships are pivotal to our collective prosperity and longevity.
Take, for instance, our partnership with EVERFI, an organisation that provides free teaching and learning resources for schools. By developing financial education resources, we are providing the next generation with a base knowledge of financial literacy that will help them make smart financial decisions in the future, which can only be positive for our community further down the line.
Since summer 2023, we have donated £500,000 between FareShare Lancashire and Cumbria and FareShare Glasgow and the West of Scotland, to offer funding to every one of FareShare’s Community Food Members in Cumbria, and some in Lancashire and Dumfries and Galloway. This helps to serve hot meals and provide food to people in the region who are experiencing food poverty.
Partnerships between building societies and local organisations are a cornerstone of sustainable development. By joining forces with nonprofits, educational institutions, and businesses, we amplify our impact and create a ripple effect of positive change. These partnerships not only foster economic growth by fuelling local entrepreneurship and homeownership, they also drive social impact by supporting initiatives that address pressing community needs. This includes financial literacy programs, addressing food poverty in the local area, and environmental sustainability efforts.
Since June 2022, The Cumberland has donated over £45,000 to Cumbria Wildlife Trust which has helped fund hiring a Red Squirrel Ranger to support its conservation work with Cumbria’s endangered red squirrels. Environmental protection is a pillar that runs deep throughout our organisation with many of our teams volunteering their time on their paid charity day to support Cumbria Wildlife Trust and our other partners.
To further support grassroots initiatives, there is also The Cumberland’s Charitable Foundation. Each year, the charity donates up to £25,000 to support community groups and charitable causes within our local communities.
The Cumberland always donates a percentage of profits to charitable organisations and communities in the region, and in FY23/24, this was a significant six-figure sum and our largest figure to date.
In today's hypercompetitive landscape, mutuals must adapt and innovate to stay relevant. By embedding ourselves in our communities through initiatives and partnerships, we not only strengthen customer loyalty but also attract new members who align with our values of social responsibility and inclusivity.
The significance of community initiatives and partnerships for building societies today cannot be overstated. By embracing our role as catalysts for positive change and forging meaningful connections with our communities, we not only secure our own success but also contribute to the flourishing of the regions we proudly serve.