Six building societies have been selected to join the second cohort of the Financial Conduct Authority (FCA) and Prudential Regulation Authority’s (PRA) Scale-up Unit.
Cumberland Building Society, Leek Building Society, Market Harborough Building Society, Newcastle Building Society, Principality Building Society and West Bromwich Building Society will take part in the programme over the next 12 months.
The Building Societies Association (BSA) says the societies “reflect the breadth and distinctiveness of the building society sector, from strong regional roots and commercial lending to innovative mortgages and everyday banking”.
The Scale-up Unit was created to support financial services firms as they seek growth and navigate the regulatory landscape.
The FCA says emerging themes in the second cohort include support with digital product innovation, deployment of AI, and capital funding mechanisms.
It is hoped the unit will support commitments made in the FCA and PRA’s joint mutuals landscape report, published in December 2025, which set out measures to support the long-term sustainable growth of mutuals through proportionate regulation, targeted support and ongoing engagement with the sector.
The unit will also supports the government’s ambition to achieve double-digit growth in UK financial services, adds the FCA, which has gathered feedback from participants in the first cohort to understand firms’ experiences of the programme and inform thinking on future cohorts.
Related: Meet … Sarah Harrison, CEO, Building Societies Association
“It is great to see the regulators recognising the potential of building societies and that growth is not limited to challenger banks,” said BSA CEO Sarah Harrison. “Building societies bring greater diversity to financial services, which supports competition and financial stability.
“The support of both regulators through the Scale-up Unit is welcome and closely aligned with the Government’s ambition to double the size of the mutual sector. We congratulate all six societies and look forward to working with them and the Regulators as the programme develops.”
Sheree Howard, executive director, authorisations at the FCA said: “We’ve already seen the benefits of the Scale-up Unit, helping firms innovate, navigate regulatory challenges and collaborate across the sector. As we welcome nine new firms, we’ll continue providing tailored support on everything from AI adoption to digital product innovation to expanding permissions and capital funding mechanisms, helping them grow sustainably and deliver for customers.”
Shoib Khan, director, UKDT supervision at the PRA, said: “The Scale-up Unit is an important part of how we are supporting sustainable growth and innovation in financial services. I’m delighted to welcome our second cohort of banks and building societies, building on our commitment to help growing firms navigate the regulatory challenges that can come with scaling up.”
