Yorkshire Building Society has been named the most efficient mutual in the UK, topping a new league table based on assets per employee, published by fintech firm Target Group.

The analysis, based on a detailed examination of the annual reports of building societies representing a combined asset base of almost £550bn and employing more than 30,000 full-time equivalent staff, places Yorkshire significantly ahead of its peers in operational productivity.

According to Target, the average value of assets per employee across the sector now stands at £18.1m. However, Yorkshire Building Society reported £28.3m of assets per employee, outperforming all other Tier 1 institutions – those with more than £10bn in total assets.

The figures, though described as a “crude measure” by Target’s head of digital solutions, Melanie Spencer, are being interpreted as a clear indication of digital maturity and the ability to leverage technology for operational scale.

“You’d expect the largest societies to be the most efficient since they’re enjoying the biggest economies of scale,” said Spencer. “But our research highlights that this isn’t necessarily the case. Some societies have invested so they can do more with less while others have not.”

Coventry followed Yorkshire with £26.8m of assets per employee, ahead of Leeds on £18.5m and Skipton on £15.3m. Nationwide, despite being the UK’s largest building society with total assets more than three times those of Yorkshire, fell behind on this metric. Its assets per employee were £18.9m, but with a workforce five times the size, it is deemed less efficient in relative terms.

Among Tier 2 societies – those with between £1bn and £10bn in assets – Progressive Building Society stood out with £14.4m of assets per employee, ahead of National Counties (Family Building Society) and West Bromwich. Cumberland Building Society was the least efficient in this group, with just £6.7m of assets per employee.

At the smaller end of the spectrum, the most productive Tier 3 society was Swansea, with £10.4m of assets per employee. Stafford Railway Building Society led among the niche mutuals with less than £500m in assets, posting a ratio of £10.1m per employee.

Despite these outliers, Target’s findings suggest that many building societies – particularly those outside the top tier – remain overly cautious in their approach to transformation and are yet to embrace cloud-based technologies or overhaul legacy systems.

Spencer warned that some mutuals could struggle to compete unless they act quickly. “To survive in the coming decades, many of the smallest building societies will need to hire a CIO,” she said. “And they must look at adopting cloud core systems as a service as a matter of urgency, rather than attempting to maintain their out-dated legacy technology. Leaving it any longer risks failing to deliver for a new generation of savers and borrowers.”

The research also named Beverley and Earl Shilton as strong performers relative to their size, while Monmouthshire, Darlington and Cumberland were listed among the least efficient.

Spencer added that the ratio of assets to employees, while not a comprehensive measure, is nonetheless a telling one. “It strikes at the heart of the issue of automation in the sector – of building societies’ willingness or otherwise to adopt technology to improve their productivity,” she said.