Squirrel it away

The society's general sales and marketing manager, Ian Smith, talks to Kelly Salter about its past and present.

How did the Monmouthshire Building Society begin?

When it began the society was like a self-help group; it was created to help people saving specially to buy their own homes.

How have customers' needs changed since the society started life in 1869?

The 20th century changed as the market changed. Personal home ownership spread and the society ceased to be a small self-help group. Now, the shareholders and the borrowers are not necessarily the same people. In the beginning the society members included trades people, and skilled artisans. The general population has become more affluent and home ownership has also become more widespread.

Tell us about the squirrel logo...

The image has been around for quite a long time, around 20 years, and it's used as a model of saving. It used to be a fairly common sight, to see a squirrel storing acorns away for the winter, and this is the model we used. That's the message - of provision. As the squirrel stores its acorns away it looks to future needs or the lean winter months. It was done without any external marketing agency - the idea was thought of in-house.

The Monmouthshire Building Society is mutual; can you explain this?

The difference between a mutual firm and a corporate business is that our customers own us - they are our shareholders. To a bank the customers are customers and the owners are a different group of people, with their investment interests in their shares only. Our shareholders are one and the same person. As a mutual we have to make sufficient profits to survive which is a statutory requirement. Our capitol reserve has to be in proportion to our size. We aren't driven like corporate firms to make dividends for their shareholders. We offer the fairest possible terms within the statutory restraints. We have a duty to run the business successfully, with the best savings and borrowing rates that we can, because our customers are our owners.

The society has its own charitable foundation; what can you tell us about that?

We donate to completely voluntary groups which aren't run to make profit. To November 2005 we helped 50 local groups with donations of £47,000. Latter ones have included Newport Schools Rugby Union and Progress Prostate Cancer support group. Support tends to be given to educational and sporting activities, as this can benefit so many local people. We also donated funds to the Friends of Newport Transporter Bridge because it's an important landmark, and the group is a reflection of the great sense of local pride in it. All the donations must be for a tangible item, like computers or specialist software. We also donate our old computing equipment to non-profit organisations when we upgrade ours.

What makes Newport and the surrounding area a good base for the society?

Our location is excellent as Newport is the largest urban area in south east Wales. We are right on the M4, plus Newport also has more motorway junctions than Cardiff, so access to the city is very good. There is going to be a lot happening in the city as it expands, and that's a very exciting position to be in for growth.

As a regional society, how is you service different to the large banks?

We can meet the local needs as we have better grasp of what our customers are looking for. We have branches in many communities which larger corporations wouldn't consider and we also have a significant high street presence. We also derive from the local community as far as possible and look to source services and provisions as locally as possible.

History of the society

It may currently boast 64,000 customers, but the beginnings of the Monmouthshire Building Society were a little more modest.

During the midwinter of 1869, a small group of men gathered at the Dock Street premises of Samuel Hares and the Burton & Britannia Insurance Company. Organised by Harse and a T J Beynon, this meeting saw the founding of the society with these two men joined by G W Jones and H Parnell to make up its first members.

Together with the trustees and a board of directors, the society was opened by 11 people on the evening of Saturday, January 23 1869. The future would also see five of the initial board members becoming Mayors of the County Borough of Newport.

The original name of Monmouthshire and the South Wales Permanent Investment Benefit Building Society is not just a bit of a tongue twister. In the 19th century, building societies were often established as temporary ventures. After providing homes for a set amount of people, they were terminated.

However, as the word permanent suggests in this title, this society was destined for longevity. In its centenary year the name was changed to the now familiar Monmouthshire Building Society.

The first loans were approved in May 1869 with £200 granted to Mr John Hellier, of Tunnel Terrace, and £150 to Mr James McBean, a bootmaker of 11 Commercial Road. Although the society's account at the West of England Bank allowed between £500 and £600 as an overdraft, it isn't known how security against its loans was arranged.

However contemporary records offer a glimpse of the past, with one customer in 1869 logged as depositing 'as a further security a Policy of Insurance on the Life of the Prince of Wales for £100'.

These old records also chronicle the social fabric of Newport's populace in the late 19th century. The society's members were drawn from the artisans and workmen of Newport. Smiths, hauliers, builders, printers and undertakers were all listed as applicants.

The prevailing trade of shipping among the society's customers also illustrates the city's former might as a port.

The society's first 30 years were accompanied by an incredible rise in Newport's population. In 1800 1,087 people lived in the town.

However, by 1869 this had reached 26,000. During the society's first 30 years, it rose again to 66,000.

The early 20th century saw a lot of upheaval, with the society's board of directors insuring £200,000 of property against damage from aircraft.

However, the society remained stable with a number of its directors serving for more than 20 years. Major T H Vile, the famous Welsh rugby international and High Sheriff of Monmouthshire served as a director for 26 years before his death in 1959.

The society's assets reached £1m in 1948, followed by successive growth through the last century. Its centenary year saw this amount to more than £6m. Modern times have seen other changes. While the society was easily accommodated in 6 Dock Street in 1869, it has seen such expansion that it now fills one side of John Frost Square.