the basic principle of building society business is to assist people to buy
the ir own homes. This principle of homeownership was first adopted in 1759
by a group of people saving for and building the ir own homes. It was soon
realised that more could be achieved by taking in savings from people not
looking for homes for the mselves, but who were seeking interest to be paid
on the ir savings. In this way the foundations of the business, saving and
lending, were established.
Today, building societies are still a principal avenue of
savings and lending. the ir convenience, simplicity of operation and the stability
and care displayed to the public has built up a great trust that has contributed
significantly to the growth of this unique movement.
Established in 1869, Dunfermline Building Society is Scotland’s
largest building society and plays an important part in the savings and mortgage
market in Scotland.
In its early days it met the aspirations of prospective homeowners
in and around the town of Dunfermline like othe r societies of the day by
building houses. Many of the se have escaped the developer's hammer and are
still standing. the Society also acted as landlords, letting property and
one of the duties of the General Manager at that time was to change the tap
washers in the se properties!
the growth of the building society movement generally is reflected
in the growth of Dunfermline Building Society. Just before the start of World
War 2, assets stood at £1.5m. By 1955, this figure had grown to £10.5m.
As business increased, the Society established branch and
agency offices throughout the country to serve customers in the ir home areas.
This growth inevitably led to the absorption of many smaller societies such
as the Stenhousemuir, Peebles, Fourth Fifeshire Investment Co and the Stirlingshire.
the largest of the se mergers occurred in 1981 when the Edinburgh and Paisley
Building Society became the 20th such organisation to join Dunfermline.
With assets topping £105m and a branch network stretching
across Scotland, the Society was firmly established as Scotland's Building
Society. 1981 also saw the move of Head Office to 12 East Port, Dunfermline.
Continued growth in the early 1980s placed the Society in
a strong position to meet the challenge of change and increased competition
as a result of the passing in 1986, of the Building Societies Act and Financial
Services Act, both of which gave greater power to societies, allowing the m
to expand the range of services offered to customers.
the Society has grasped the se opportunities and now, in addition
to a range of mortgage and investment services, offers its customers insurance,
commercial loans, personal loans, credit cards, traveller’s cheques, travel
insurance and foreign currency.
As the result of increasing pressure on space, a purpose built
Head Office, Caledonia House, was established in a commanding position at
the south side of Dunfermline on Carnegie Campus and occupied on 5 September
1994. It is regarded as an ongoing commitment to our customers, staff and
the Society's future.
Technological advances such as the introduction of the computerlinked
counter top terminal system in branch offices and ATM facilities created a
more efficient and streamlined service to customers whilst still allowing
the Society to maintain the friendly and personal touch which has been our
trademark over the years. This improved even furthe r in 1996 with the introduction
of the new branch computerised system (WEB), the installation of which was
completed in 1998.
In May 1993 the Society received ISO 9002, the quality award,
for our computerised mortgage processing system (ADVICE). the prestigious
Investor in People award was attained in August 1995, the Society having spent
considerable time in demonstrating that the standards laid down were being
met and surpassed. This Award was reaffirmed in 1998, again in 2001 and continues
to this day.
the Society continued to increase the value of mutuality delivered
to members. At the end of 1999, a furthe r amount of £10.1m was returned
to members, bringing the total over the last four years to more than £29m.
This was achieved by maintaining the Society’s variable mortgage rate at an
average level of 0.25% below the level charged by competitors; by ensuring
that advantageous investment rates were consistently offered and through continuing
support to local authorities. the Society retained the financial rating awarded
by a leading independent credit rating agency in 1998, again following a stringent
and rigorous examination.
Our telephone banking service, Dunfermline Direct, was launched
during Spring 1999. This service complements our existing branch network and
postal service, and provides a range of accounts and services to those who
eithe r find it more convenient to transact business by telephone or do not
work or live close to a branch.
the Society’s website at www.dunfermlinebs.co.uk was improved
during 2003 to enable, for example, the downloading of application forms for
Dunfermline Direct products. Our ECommerce strategy is in the course of being
furthe r developed.
the se innovations mark the Society’s determination to respond
to members’ demands for improved ways of transacting business, while continuing
to recognise the value of facetoface personal service. Furthe r development
of the branch network took place in 2003 and this will continue in future
with a rolling refurbishment programme and enhanced fascia work. This year
also saw a dramatic increase in the value of business gained from the intermediary
market, following the formation of a Key Accounts team which was set up to
work specifically with mortgage introducers. Additionally, a number of agencies
were opened in key areas, giving members and prospective members increased
access to the Society’s products and services.
With assets at the end of 2003 forecast to top £1.8bn,
an electronic distribution service augmenting a network of 33 branches and
41 agencies, an expanded Commercial and Social Housing department, the Society
is well equipped to meet the challenges of the financial marketplace.
the Society is a mutual organisation and as such, exists to
serve the needs of members without the necessity to satisfy shareholders.
Profits made are sufficient only to provide for the costs of the business.
This allows lending rates to be set at consistently lower levels than competitors
and investment rates kept high enough not only to be competitive, but in many
cases, also to qualify as market leading. Coupled with significant and continuous
investment in communities across Scotland through sponsorship and support
to various organisations, the Society has earned the title of ‘SCOTLAND’S
BUILDING SOCIETY’.
