UK building societies should look to back office collaboration as an alternative to further consolidation through mergers and acquisitions says a study by PricewaterhouseCoopers.
The study, 'Strategic imperative or tactical response? - A survey of building societies’ attitudes towards sharing services', says back office collaboration would enable building societies to exploit their collective size and strength, whilst retaining individual society brands and local affinities as well as protecting their mutual status.
As part of the survey, PwC conducted face to face interviews with chief executives from 25 UK building societies between May and September 2001.
With cost-cutting cited as the overwhelming factor for sharing services, PwC argues that many societies will need to adopt a more radical view of their processes and what constitutes their core differentiating activities if they are to maintain their independence.
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