Finance for Sheffield - Sheffield First Partnership

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Finance for Sheffield
A reminder
• Research published in May 2013: 50,000
Sheffield residents with high cost loans
• SEB supported proposals to develop a new
intervention in this market for Sheffield
• Development of the new company followed
completion of the full business case in Spring
2014
• Business will open to the public on 12th
January 2015
So far…
• Finance for Sheffield established as a
Community Benefit Society
• Agreements reached with Five Lamps and
Transave to act as CDFI and Credit Union
partners
• Developed a clear brand identity
• Established a clear product offer
• Identified and secured prominent city
centre premises
:how it compares
Customers in this market care about:
•
Cost per week
•
Customer service
•
Speed of accessing finance
Decisions are not based upon APR
To compete successfully, Sheffield Money
will aim to meet those customers’ needs
Companies like Wonga and Provident encourage taking
on more loans resulting in a gradual increase of debt
Sheffield Money will help its customers manage their
money better, helping them over time to access lower
cost products and hopefully move out of debt
completely. It will also be more flexible towards
repayments and how missed payments are treated in
relation to existing debt.
This is a higher risk market than the mainstream and higher interest rates are inevitable if the company is to be
self-sustaining. However, Sheffield Money products will have a total cost of borrowing of less than 50% of the
equivalent commercially available product.
Cost of borrowing comparison with commercial providers
40
300
35
250
30
200
25
20
150
15
100
10
50
5
0
0
£100 loan through Sheffield
Money (over 3 months)
£100 loan through Wonga
(over 30 days)
£300 general loan through
Sheffield Money
£300 loan through Provident
Product offer
• Loans
• Savings
• White Goods
• Insurance
Branding
Branding
How can you help?
• Payroll deduction
• Investment – for business development
and (in the future) for lending capital
• Routes to customers
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