slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Welcome PowerPoint Presentation
Download Presentation
Welcome

Loading in 2 Seconds...

play fullscreen
1 / 10

Welcome - PowerPoint PPT Presentation


  • 82 Views
  • Uploaded on

Welcome. 03 July 2014. My goal for the day is simple… ...to pave the way for more co-operation. To get Housing Associations and Credit Unions to partner more effectively To build on the excellent examples of partnering we already have

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

Welcome


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

Welcome

03 July 2014

slide2

My goal for the day is simple…

              • ...to pave the way for more co-operation.
  • To get Housing Associations and Credit Unions to partner more effectively
  • To build on the excellent examples of partnering we already have
  • To build new alliances and to reaffirm those that already exist
  • Hopefully a day with something for everyone

Why?

slide3

exploitation

  • The impact of financial exclusion
  • People that have survived the recession
  • Changed job (period out of work)
  • Missed car or other credit payments and max’d out a couple of cards
  • Back on course learning to live on less
  • Can’t get credit from any mainstream source
  • Turning to high cost credit out of necessity

12mpeople

BIG business for some

slide4

Financial Exploitation Impact of high cost borrowing

£638

High Interest

Limited Disposable Income

£314

£225

£210

Weekly

payment

Store

Home

credit

provider

Credit Union

Loan

Cash

Price

slide5

Impact of high cost borrowing

  • People’s living standards
  • Limits the ability to save
  • Impacts household budgets
  • Creates financial stress
  • Reduces money supply in communities
  • Curtails economic growth
  • Contributes to increasing levels of poverty

Average savings on a Credit Union loan v. a doorstep lender is £401 (Source DWP)

Multiply the savings by the number of loans granted since October 2006

This equates to

£4,803,178 over a 73 month period

Or £65,797 per month.

slide6

What is a Credit Union?

  • Financial co-operative owned by its members (1 member – 1 vote)
  • Operate within a defined area – a common bond
  • Members elected unpaid directors
  • Each sets its own independent operating standards and methods
  • All regulated by the PRA in a similar manner to any other UK
  • Covered by the FSCS £85,000 deposits guarantee

Licensed Deposit Taker

Members save in a common fund

Lender

Make personal loans to members

Interest Generated

Covers for operating costs & reserves

Not-for-Profit

Surplus repaid as a member dividend

slide7

Our borrower profile

A

B

C

D

E

Has capacity, has proven intent & a good credit profile

Has capacity & has intent but a weak credit profile

Has limited capacity & has intent

Has capacity but no intent demonstrated

Highly stressed financially with no capacity to repay

(Legislation NOT Lending)

We do not rely on score cards or automated underwriting but use a face-to-face assessment of capacity and intent

slide8

What we can do

  • Put back into the pockets of your tenants money paid in unnecessary interest repayments
  • We can help tenants budget for rent and council tax (some credit unions have already developed specialist savings products – Rent Direct)
  • We can’t do
  • Give financial or debt advice but we can refer
  • Give a loan to someone that can’t repay it
slide9

The future

  • Become self-sufficient or cease to exist (reduced WG funding)
  • Attract more members, including people on middle and higher incomes who can save and borrow larger amounts
  • By growing our presence in this middle market, we can improve net interest revenue and continue to off-set the cost of delivering more socially orientated savings and loan programmes to the less fortunate in our Society
  • With only a 2% market share we need to grow

We'd like your help