2021 is turning out to be a successful year for award-winning Darlington Building Society. PETER BARRON looks back on the highlights so far

As the country learns to live with the challenges of the Covid-19 pandemic, Darlington Building Society chief executive Andrew Craddock can look back with pride on a “remarkable” period of solid achievement, resilience, and progress.

There was a particularly rewarding moment for all the staff in June when the Society was named “Building Society of the Year” at the prestigious Money Age Mortgage Awards, presented at London’s Marriott Hotel.

The award was in recognition of the Society’s unwavering commitment to an “open for business strategy” throughout lockdown, along with its continued investment in jobs despite the national economic turmoil. It also recognised the Society’s ongoing support of the community through grants and volunteering. As a result of its pledge to donate five percent of its profits to good causes, the Society will this year donate £100,000 to local worthy organisations, supported by a contribution from the County Durham Community Foundation.

The national award was followed, in August, by the Society announcing strong financial results for the first half of 2021, along with a growth in membership, and further investment.

Mr Craddock describes the results as “evidence that the Society’s financial resilience and strategy of putting members first is the right one, especially in the unprecedented circumstances faced last year.”

Highlights from the financial performance for the six-month period ending on June 30, included:

• Profit before tax rebounded strongly to £1.8m (unaudited) – more than double the profit for the whole of 2020.

• Gross mortgage lending was just over £90m – more than double that achieved in the first half of 2020.

• Mortgage balances increased by just over £30m – the same as that achieved in the whole of 2020.

• Savings balances increased by just under £20m, more than seen in the whole of 2020.

• Number of members increased by just under 900, growth of one per cent in the first half of 2021.

“The pandemic has underlined the need for businesses to be resilient and flexible in the ways they serve members and look after the health and wellbeing of staff,” adds Mr Craddock. “Our aim is to be as member-focused as possible, as well as growing our reputation as somewhere talented people want to work.”

That objective was given an important boost back in May when the Society was named by Best Companies – a highly-respected organisation specialising in workforce engagement – as one of the UK’s top 100 midsized companies to work for.

The Northern Echo:

DBS was also rated in the country’s top 30 Best Financial Services companies to work for, as well as being one of the top 30 Best North East companies to work for.

The Society continued to innovate on mortgages, building on its core purpose – dating back 165 years – to help people achieve their dream of owning their own homes. Indeed, it was proud to be one of only eight lenders nationally to pilot the Government’s flagship First Homes scheme, designed as a sustainable way of helping first-time buyers onto the property ladder.

First Homes makes it at least 30 per cent cheaper for people to buy their first home. However, when the property comes back on the market, it is independently valued and the same 30 per cent discount is passed on to the next first-time buyer.

Housing secretary Robert Jenrick recently announced that the third phase of the scheme would be in Newton Aycliffe, with 12 cut-price First Homes houses being unveiled on the Elder Green development.

Darren Ditchburn, Darlington Building Society’s chief customer officer, says: “We are proud to have had a voice in shaping a flagship scheme that we view as an important step in the right direction.”

In the midst of this success, the Society knows it cannot rest on its laurels and is, therefore, driving through a “change agenda” which includes:

• Mortgage sales and origination system (MSO): Designed to make it quicker and easier for brokers to make mortgage applications. A fully integrated system that streamlines the process, it is for new cases only.

• New member experience platform: A significant investment in the Darlingtonline proposition. At present, customers can only view transactions online, but this new platform will enable them to open accounts online and have access to online banking via mobile phones.

• New telephony system: Launched in June, a web-based system, meaning staff can be logged on whether they are working in branch, head office, or from home. Designed in response to member feedback, and involving extensive staff consultation, it has enhanced functionality and unlimited lines, ensuring callers can be directedto the right person.

• A new, modern, member-focused website: Launched in August, it is designed to make member interaction much more accessible and faster. A few key changes are the reading age of language has been reduced, the font made clearer to help visually impaired, and the addition of a new mortgage calculator. It adds up to a significant investment that chief operating officer, Chris Hunter, predicts will be “the springboard for Darlington Building Society securing its future for the next 165 years”.

At the heart of it all, is the dedication of a team made up of 160 members of staff. And Andrew Craddock is quick to acknowledge their contribution through a time of unprecedented difficulties.

“Every single person has contributed to these results, as they focus on providing the best possible service to our members,” he says. “I remain proud and humbled by their dedication and tenacity in the face of everything we have dealt with in the last 18 months.

“I am sure we will continue to go from strength to strength, as this team seems unwilling to fail. And the net result is a service to our members that is second to none, whether they are saving for the future, or have realised a dream to own their own home.”

  • To find out more about the products and services offered by Darlington BuildingSociety – the UK’s building society of the year – please visit: darlington.co.uk