What defines a building society?

A building society is primarily defined as a mutual financial institution owned by its members. This means that the members who save and borrow from the society have a stake in the organization, and they have voting rights in how the society is run. Building societies typically offer savings accounts and mortgage products and aim to work in the interest of their members rather than generating profit for external shareholders, as is the case with many traditional banks.

The structure allows members to benefit from any profits made, which can be reinvested in better services or shared among members in the form of lower fees or better interest rates. This mutual ownership model is a distinguishing feature of building societies compared to banks, which operate for profit and can have different kinds of ownership structures.

The other options describe different types of financial entities or concepts that do not capture the essence of what a building society is. Building societies do not focus solely on low-interest loans, community investment, or act as financial technology platforms; they are fundamentally characterized by their mutual ownership and member-centric operations.