Coventry takes over Co-op Bank: Are mutuals losing their edge?

Coventry Building Society, established 140 years ago by Thomas Mason Daffern, is set to acquire the Co-operative Bank for £780 million. This significant move comes at a time when another building society, Nationwide, is also preparing to purchase Virgin Money. These developments mark a notable shift in the role of building societies within the financial sector, as they begin to offer services traditionally associated with banks, such as current accounts and business banking. The original mission of building societies was to assist local communities in saving and borrowing for home ownership. However, the recent acquisitions suggest a departure from this foundational purpose, raising questions about the distinctiveness of mutual organizations in the current financial landscape. As building societies expand their services and engage in banking acquisitions, the traditional model of mutuality may be at risk. The growing trend of mutuals buying banks could lead to a blurring of lines between these entities and their commercial counterparts. This shift prompts a broader discussion about the future of mutuals and their ability to maintain their unique identity in an increasingly competitive market. The implications of these transactions could redefine the role of building societies, challenging their original vision and potentially altering their relationship with the communities they serve.