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Citysave Credit Union Angela Clements, CEO. Overview Introduction Background – Our Communities 2012 Social needs Barriers to accessing banking services.

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Presentation on theme: "Citysave Credit Union Angela Clements, CEO. Overview Introduction Background – Our Communities 2012 Social needs Barriers to accessing banking services."— Presentation transcript:

1 Citysave Credit Union Angela Clements, CEO

2 Overview Introduction Background – Our Communities 2012 Social needs Barriers to accessing banking services Alternative banking – A way forwards Community solutions 2015

3 Community 2012 Diverse Busy Using a range of financial providers Little savings buffer Low trust in banking At risk from predatory corporate behaviour

4 Feasibility & Need >9m adults do not have access to transaction banking or pay over £100 per year in excess fees Poverty premium is estimated at £1,000 for purchase of essential goods & services Personal debt includes rent arrears and fuel arrears and growth in high cost lending Unstable household finance is a barrier to stable family life, moving home, to building a career A barrier to enterprise

5 Alternative Banking - vision Ethical, affordable and accessible jam jar banking plan Create savvy and empowered consumers, actively combating predatory behaviours of other service providers Create stable households, remove barriers to enterprise and needs for multiple and repeated interventions Create a stable credit union sector, based in local communities with long term valued services to members, a higher profile and a clear branded offering with collegiate operation

6 Barriers to overcome Mobility Language Trust Lethargy Literacy Confidence Credibility Efficiency Fit for purpose

7 Credit Union Sector In the UK for almost 30 years Similar background to Trade Unions & Cooperatives 400 credit unions serving c1% of population Savings £762m and lending £604m Run by members for benefit of members Each serves a common bond Not for profit Regulated by FSA Savings protected by FSCS

8 Credit Union Expansion Project To achieve 1m new members by 2019 Increased lending to £1bn by 2019 Make credit unions sustainable by 2019

9 Potential DWP feasibility report 2012 - credit unions appear to be the only other realistic option Between 25% and 50% of the populations of the USA, Canada, & Australia are credit union members 5% of UK market within 5 years – 5 th largest personal bank in UK

10 Alternative Banking Solutions An entity made up of credit unions Accessible, affordable and ethical banking solutions delivered through credit unions United, credit union led solutions Partnerships driven by credit union ethos to deliver in its communities Each credit union strengthens in its identity and value to its community, through efficient partnering Credible and coherent, low cost, high impact financial solutions fit for a society who have lost faith and trust in current providers

11 Partnering... Care Housing providers Support system Intervention Employers Welfare to work Councils Mutuals Utilities Corporates

12 Technology – TCS Web based Immediate Responsive Future proof Global best in class IT solutions

13 Contact Centre Personal, telephone based small teams Service is rapid, prompt, and proactive Initially Birmingham 7 days a week – flexible hours & multiple delivery channels Engaged and supportive Membership based Glasgow next, Liverpool, North East....

14 A managed service Income comes in to the pot from wages / universal credit & automatically split into Rent Council tax Bills Loan Savings Free Members must have a savings plan – min of £2 per week Free balance account has a leading prepaid card Member may nominate all key household bills to be paid including utilities, TV licence, internet, household insurance

15 Low cost, high impact Access points at all credit unions and trusted partners for multi channel delivery High visibility and easy to use overcoming digital exclusion Members assistance plan – debt, legal and medical emergency advice

16 Reducing payment costs Key household bills that many struggle with Using digital payment technology Change bill payment structures & remove the burden to the payer Work with payees – reducing collection costs Work with DWP on universal credit delivery Innovative, joined up thinking and delivery.... To drive out cost Cost is always borne by the consumer

17 Community 2015 Better money management Better payment solutions Removal of poverty premium Branded and trusted financial alternative Good access to community based financial institutions Increased saving ethic with less reliance on borrowing to meet minor emergencies Access to affordable lending Access to first time buyer mortgages A credible & sustainable credit union sector

18 Credit Union Movement Is moving...... Q&A please

19 Who are Tata ? The Tata Group are the largest manufacturer in Britain with over 50,000 employees across 19 companies and more than 40 towns and cities. Corus Steel Jaguar Land Rover Tetley Tea Restaurants and Hotels Tata Consultancy Services / IT Tata's connection with Britain goes back to 1863 and the cotton mills of Lancashire. Tata made a donation to The London School of Economics to research poverty - this led to the establishment of the Department of Social Sciences in 1912. One of our twin buildings was donated by Queen Victoria in recognition of our links with Britain

20 Tata Consultancy Services - Financial Solutions and CUEP Social responsibility is a core belief within TCS. Major Banking player with 250 plus Banks worldwide inc. State Bank of India and Bank of China Major UK player - winning 2 of the most recent Public Sector Banking centric implementations in the UK i.e. The Nest and Child Maintenance Group Two UK Credit Unions going live as we speak 3000 plus in China and major installations in Australia TCS BaNCS is top rated by all the major industry consultants eg. Gartner, Tower, Forrester Offering a step change to the Industry with a tried and tested, robust, scaleable solution which has a committed future

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