responding to the financial crisis in our communities cfrc 26 th september 2012
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Responding to the financial crisis in our Communities CFRC 26 th September 2012. Citysave Credit Union Angela Clements, CEO. Overview. Introduction Background – Our Communities 2012 Social needs Barriers to accessing banking services Alternative banking – A way forwards

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responding to the financial crisis in our communities cfrc 26 th september 2012

Responding to the financial crisis in our CommunitiesCFRC 26th September 2012

Citysave Credit Union

Angela Clements, CEO

overview
Overview
  • Introduction
  • Background – Our Communities 2012
  • Social needs
  • Barriers to accessing banking services
  • Alternative banking – A way forwards
  • Community solutions 2015
community 2012
Community 2012
  • Diverse
  • Busy
  • Using a range of financial providers
  • Little savings buffer
  • Low trust in banking
  • At risk from predatory corporate behaviour
feasibility need
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

alternative banking vision
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
barriers to overcome
Barriers to overcome
  • Mobility
  • Language
  • Trust
  • Lethargy
  • Literacy
  • Confidence
  • Credibility
  • Efficiency
  • Fit for purpose
credit union sector
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
credit union expansion project
Credit Union Expansion Project

To achieve 1m new members by 2019

Increased lending to £1bn by 2019

Make credit unions sustainable by 2019

potential
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 – 5th largest personal bank in UK

alternative banking solutions
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
partnering
Partnering...
  • Care
  • Housing providers
  • Support system
  • Intervention
  • Employers
  • Welfare to work
  • Councils
  • Mutuals
  • Utilities
  • Corporates
technology tcs
Technology – TCS
  • Web based
  • Immediate
  • Responsive
  • Future proof
  • Global best in class IT solutions
contact centre
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....
a managed service
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
low cost high impact
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

reducing payment costs
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

community 2015
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

credit union movement
Credit Union Movement

Is moving ......

Q&A please

who are tata
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

tata consultancy services financial solutions and cuep
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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