Data, niches, and AI: Simon Taylor on the evolution of the mutual sector

At FTT Lending, we had the chance to sit down with Simon Taylor, Chief Executive Officer of Melton Building Society, for a conversation that was in equal parts reflection and forward-thinking. As Melton Building Society celebrates an incredible 150 years of supporting its members, Simon offered his perspective on what it means to lead a historic mutual in today’s fast-changing mortgage market and why staying relevant means being ready to adapt.

The conversation began with a look at the economic challenges facing both lenders and borrowers. “I think it’s very difficult to understand where things are going” Simon noted, referencing rate fluctuations, global uncertainty, and the ripple effects of the cost-of-living crisis. But rather than wait and watch, Melton Building Society has responded by diversifying its mortgage offering, from helping first-time buyers to offering credit repair products and self-build loans. The focus, Simon explained, is simple: understand member needs and be flexible enough to meet them.

Simon also shared his thoughts on where the mortgage market is heading, and it’s clear that change is coming fast. From digitising the homebuying process to adopting API-driven technologies, building societies must be ready to compete in a more open and tech-enabled environment. But rather than trying to do everything, Simon believes mutuals like Melton will find success in focusing on specialist areas and niches, like self-build, shared ownership, and credit repair, where deep understanding really matters.

And then there’s AI. Simon was clear: artificial intelligence and machine learning are going to shake up the industry, especially for brokers. With automation increasingly able to personalise advice and manage risk, the traditional broker model may need to evolve. But for Melton Building Society, this shift represents opportunity. With 150 years of experience and a readiness to innovate, the society is preparing for a future where personal service and smart tech go hand in hand.

Want to hear more from Simon? Watch the full interview in the video below.