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Darlington Building Society is in the running for a number of awards – but that’s only part of the story. Peter Barron reports

AS the recently-appointed chairman of Darlington Building Society, Jack Cullen is clearly delighted that the organisation, founded more than 160 years ago, has been shortlisted for a raft of awards.

But Mr Cullen is also quick to stress that awards should principally be viewed as an affirmation that the Society is serving its members, customers, and the local community in the right ways.

“Everyone likes to win awards but what’s far more important is that it shows we are on track,” says Mr Cullen.

“It’s clearly recognition of the strengths of the brand, the whole ethos of the company, and of the excellence of our staff,” he adds. “If we win, that’s great, but whatever happens, we will be inspired to redouble our efforts to meet the needs of local people.”

Darlington Building Society (DBS) has been shortlisted in three categories in the Money Age Awards: Mortgage Provider of the Year; Savings Provider of the Year; and Best Charity Provider of the Year. These awards “honour the banks, building societies, savings and investment providers, mortgage companies and personal finance specialists that have proved themselves to be ahead of the game in the field of consumer finance with their product provision, innovation, focus on value and customer service”.

In addition, DBS has been shortlisted for Marketing Campaign of the Year and Marketing Director of the Year in the North East Marketing Awards.

Together, the five awards span the main areas of focus for the Society as it moves confidently into a new era…

MORTGAGES

Many borrowers do not fit into the criteria set out by larger providers. Mainstream lenders frequently use computer credit scoring to assess suitability for a mortgage offer, so it is often a case of “computer says no”.

In contrast, DBS has a personal underwriting service that allows it to consider every case on its merits and provide exceptional personal service – boasting an average Smart Money People rating of 4.59 out of five for its mortgage products.

Instead of a computer making the decision, every deal with DBS is underwritten by a person, enabling the Society to help more people – especially young professionals – onto the property ladder.

“All of the areas covered by the awards were discussed in depth at a recent strategy day and everything came back to finding ways to help people, no matter how complex their needs might be,” says Mr Cullen.

“For example, on mortgages, we need to try to help the generation of trapped renters and come up with innovative ways to get them onto the property ladder.

“We try to look at every case individually and provide products to meet those needs. Our aim is to be pragmatic and practical in helping people. For us, it’s not just about making a profit – because we are a mutual we can be different.

“The whole essence of everything we do is geared towards the needs of our members and future members and what products we can design to provide a solution. That’s what we are all about.

“Financial products are now just a commodity. Anyone can copy them. But what can’t be copied is attitude and philosophy, and our attitude is that we are there to help you.

“Flexibility is the key because it allows us to do things that others can’t or won’t do. It makes us different.

“Our message is simple: ‘Come and have the conversation, even if others have said it can’t be done.’”

And it is a message that is clearly being heard because approved mortgages at DBS showed an 18 per cent increase last year, lending a total of £131.1m.

SAVINGS

Darlington Building Society was named Best Savings Provider at this year’s British Bank Awards and yet its service to savers is about to be significantly enhanced.

Mr Cullen is confident that the Society will launch e-banking in the very near future – the first time the Society will have provided digital services to members in its long and distinguished history.

E-banking will:

• Allow people to use their personal computer to log in to their account

• Check their balance

• Transfer money between their DBS accounts

• Transfer money out of their saving account to their nominated bank account with another provider

• Transfer money in from another provider to their Darlington Building Society savings account.

“Again, it comes back to what’s right for people. How we can help them – how we can make it more convenient to manage their finances,” says Mr Cullen.

E-banking is a development to come, but it’s a recently established innovation to encourage young savers that’s the main focus of DBS being shortlisted for the Money Age savings award.

Recognising that many children don’t understand the value of saving regularly, the Society launched its Darly Young Savers Account in 2017, for children aged 12 and under in the areas served by its branches in County Durham, Teesside and North Yorkshire.

A new character was created – Darly the train – to engage young people and encourage them to save. Young savers receive a Darly train money-box upon opening the account, and they can collect additional carriages the more money they save.

MARKETING

Not surprisingly, Darly the train also stars in the Society’s nomination for the campaign of the year in the North East Marketing Awards.

Building on the interest generated by the character of Darly, the little blue train, the Society commissioned a children’s book to be professionally written, first as an exciting story in its own right, but also as an creative marketing vehicle for the junior accounts.

Following the spectacular launch of the book at Theatre Hullaballoo in Darlington, regular story-telling sessions have been arranged at local schools over the past year.

A well-designed product, coupled with an innovative approach to marketing, means Darly the train is well on track to providing the right platform for young savers. So far, around 500 savers have joined since the special account was launched, and the balance of all the Darly accounts stands at more than £70,000.

“It really is a great example of the highly original way we have gone about getting our message out there,” says Mr Cullen.

“With the 200th anniversary of the Stockton to Darlington Railway approaching in 2025, a train was a very appropriate symbol, and fantastic incarnation, of our local history.

“We wanted to encourage kids to save and get into a good habit that will stay with them for life, but we wanted to capture their imagination at the same time.”

The fact that profits from the book go into the Darly Children’s Foundation, raising funds for literacy project at local schools, again underlines the Society’s commitment to the local community.

Mr Cullen is quick to underline the importance of the role played by Caroline Darnbrook, the Society’s Director – Products and Marketing, who has been shortlisted for Marketing Director of the Year in the North East Marketing Awards.

Before joining DBS in 2014, Mrs Darnbrook had spent 16 years with the National Australia Group UK, leading a 25-strong team as head of customer insight and brand.

Her leadership of the Darly campaign was just one of several projects she has managed and, during her three years with the Society, Caroline has helped turn around a long-term position of net customer reduction to a net increase of more than 1,000 members.

“Caroline’s brief was to refresh the brand, and to put customers and members at the heart of everything we do, and she has done that with great creativity and excellent man-management,” says Mr Cullen.

CHARITY

The essence of Darlington Building Society can be traced back to its launch as an independent building society in 1856, as the Darlington Working Men’s Equitable Permanent Building Society. It’s overriding mission then was “to benefit local people” and that principle remains at the heart of its strategy in 2018.

Upon his appointment as chairman earlier this year, Mr Cullen stressed that there was an unequivocal agreement at board level that the Society would continue to invest five per cent of its profits back into the community.

Members are involved in choosing which charities receive support, and along with the local community, they are invited to vote on the types of causes to be prioritised, as well as the specific charities receiving grants.

The five per cent pledge led to £75,000 being shared by local charities in 2017, with the Society supporting around 8,620 people involved with 148 organisations. The Society’s staff also spent 937 hours volunteering in the community, with a further 250 so far this year.

Mr Cullen is a keen golfer and, in July, the first chairman’s golf day raised more than £6,000 for the Daisy Chain charity, which provides a haven for people affected by autism.

“The bottom line is that the more we prosper, the more the local community will benefit –that remains a core principle of the Society,” says Mr Cullen.

Win or lose when awards are handed out, Darlington Building Society remains committed to doing what’s right.