Adviser-only strategy pays dividends for Dudley

Adviser-only strategy pays dividends for Dudley

An adviser-only strategy is “paying dividends” for Dudley Building Society, which announced year-end results headlined by a £887,000 pre-tax profit, up from £556,000 in 2014.

New business lending through its exclusively intermediary policy increased by 68 per cent to £52.2 million over the previous year. This was already built on a tripling of pre-tax profit to £556,000 for 2013/14.

The society has consolidated its relationships with key mortgage distribution partners, which provide access to Dudley’s product range for the intermediary community, according to chief executive Jeremy Wood.

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Speaking to FTAdviser, he explained that over the last few years the society has gone from making next to nothing to starting to lend again, sorting out the back book and moving to a new IT system.

“We had fairly widely-publicised credit issues and had taken bad debts onto the balance sheet, but we managed to get out of most of the difficult positions, which is great because that really took up a lot of time,” said Mr Wood.

“The IT systems change has also let our staff get on with things, bringing more automation and removing manual processes in fairly basic areas like customer letter writing for instance.”

He was keen to stress that they have maintained that key building society differentiator of manual underwriting, something which was often on top of the list of things advisers requested.

“When we embarked on our business development strategy with the intermediary community we tried to select firms we could work with, but we had to up our game as they are often hard task masters.”

Mr Wood added that it will begin working with Openwork in the next couple of weeks to broaden its reach further into the savings channel.

The Dudley currently has six branches in the local region, with approximately 4,770 borrowing members, 31,063 investing members and £329m of assets. Its annual general meeting will take place on 23 July.