1. www.assenti-research.co.uk Shariah Compliant Credit Union Product Research Presentation of Findings Prepared for: DWP Financial Inclusions Champion Initiative (West of Scotland) Date: June 2010

2. www.assenti-research.co.uk Assenti Research commissioned to establish interest in a Shariah compliant credit union product among Glasgows Muslim population Key research objectives to determine: Current usage and attitudes to financial products and services Knowledge and understanding of Credit Unions Interest in a Shariah Compliant Credit Union account and products Background & Objectives

3. www.assenti-research.co.uk Quantitative approach was used - 206 face-to-face interviews conducted in Glasgow All interviewing was undertaken by Taylor Mackenzie All respondents practicing Muslims and financial decision makers Loose quotas were set on age to ensure that the sample reflected the local Muslim population. Analysed using Snap Method & Sample

4. www.assenti-research.co.uk Final Sample Structure – Age Quotas Quota % Achieved % Quota No of Interviews Achieved No of Interviews 16-2426245250 25-3429325866 35-5937337468 60+8111622 Total100 200206

5. www.assenti-research.co.uk Demographic Profile

6. www.assenti-research.co.uk Gender: 61% male, 39% female Age: Reasonable spread of ages – Minority in the 60+band (11%) Employment: Two thirds (68%) in employment full time /part time or self employed. 16% looking after family Majority (90%)have more than one adult in the household- Majority are families with children (82%) Over half (59%) in rented accommodation private or social, a third (36%) owner occupier Summary of Demographics

7. www.assenti-research.co.uk 61% male and 39% female Age and Gender

8. www.assenti-research.co.uk Adults in Household

9. www.assenti-research.co.uk Majority have children under 16 (82%) Number of children (under 16) in household

10. www.assenti-research.co.uk Employment Status % Employed (full time or part time)54 Self employed (full or part time)14 Looking after home /family16 Full time education9 Unemployed and available for work3 Retired3 Permanently sick /disabled1 Base: 206

11. www.assenti-research.co.uk Housing Status

12. www.assenti-research.co.uk Financial Decision Maker

13. www.assenti-research.co.uk Current Financial Product Holdings Yes (%) No (%) Current Account (Bank or Building Society)8119 Insurance (Home contents etc)3664 Mortgage3565 Savings Account (Bank or Building Society)3367 Credit card2971 Personal loan from a family member1684 Bank Loan991 Personal Loan from a friend595 Credit Union Account298 Base: 206

14. www.assenti-research.co.uk No of adults with bank/CU account vs no adults on household

15. www.assenti-research.co.uk Credit Card Usage AgreeDisagreeDont Know %% I pay off my balance every month 8317 I use my credit card to help me spread out payments for large purchases 3268- I dont pay interest on my credit card 60382 I use my credit card to help me juggle my finances 62363 Base 60

16. www.assenti-research.co.uk Reasons for self/other adults in household not having bank account ReasonSingle Most Important reason No need7062 Not compliant with Shariah Law2815 Language Problems244 Dont have regular income1811 Dont trust banks76 Convenience31 Cant empty the account when I need to2- No banks or credit unions near my home-2 Base 178

17. www.assenti-research.co.uk Value of Current Savings

18. www.assenti-research.co.uk Usual method of bill payment

19. www.assenti-research.co.uk Sources used to meet unexpected bills Up to £500£500- £1000 £1001- £2000 >£2000 %% Borrow from friends/family 54747678 Bank loan571112 Credit card8556 Borrow from an unlicensed loan provider 1235 From existing savings 41272321 Base 206

20. www.assenti-research.co.uk Ever taken a loan from a non–regulated source

21. www.assenti-research.co.uk Relative importance of financial product features Very important Quite Important Neither Nor Not very important Not at all important %%% Interest charges 632216-- Trust523018-- Compliant with Shariah Law 44331831 Location of service provider 21422413- Used them before 3035323- Base 206

22. www.assenti-research.co.uk Knowledge and attitudes to Credit Unions

23. www.assenti-research.co.uk Knowledge of credit unions

24. www.assenti-research.co.uk Knowledge of credit unions TrueFalseDont know %% You can save and borrow money with a credit union 78319 Credit unions are just like banks424019 You can repay a credit union loan early without a penalty 60832 You have to have savings to take out a loan 58834 I dont know much about credit unions185328 Base: 118

25. www.assenti-research.co.uk Interest in Shariah Compliant Credit Union Product

26. www.assenti-research.co.uk Interest in a Shariah compliant credit union product Reasons for interest: borrow/save within confines of Shariah Law (97%), money would be safe (57%)

27. www.assenti-research.co.uk Reasons for not being interested in Shariah compliant credit union product

28. www.assenti-research.co.uk Preferred locations to access Shariah compliant credit union product

29. www.assenti-research.co.uk Should Shariah compliant credit union be authenticated

30. www.assenti-research.co.uk Interest in other Shariah Compliant Products

31. www.assenti-research.co.uk Level of borrowing interested in % Up to £5002 £500-£10003 £10001-£15003 £1501-£200014 Dont know74 Base 95

32. www.assenti-research.co.uk Conclusions and Recommendations

33. www.assenti-research.co.uk Opportunity to increase access/ uptake of a wider range of financial services amongst the Muslim community current accounts are held by a majority, lower incidence of mortgages, savings and loans Based on our findings we believe there is a need for a Shariah Compliant Product. Essential for this product to have a number of specific characteristics namely products on offer must be within the confines of Shariah Law prefer to access through the Mosque authenticated by the Imam of the Mosque cash must be one of the payment methods on offer Conclusions and Recommendations (1)

34. www.assenti-research.co.uk To optimise product appeal and uptake awareness and knowledge of how a credit union works must be improved differences from more traditional providers develop trust for long term relationship Conclusions and Recommendations (2)

35. www.assenti-research.co.uk Shariah Compliant Credit Union Product Research Presentation of Findings Prepared for: DWP Financial Inclusions Champion Initiative (West of Scotland) Date: June 2010