Angela Clements - Learning and Work Institute England

Citysave Credit Union
Angela Clements, CEO
 Introduction
 Background – Our Communities 2012
 Social needs
 Barriers to accessing banking services
 Alternative banking – A way forwards
 Community solutions 2015
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
 >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
 Ethical, affordable and accessible ‘jam jar’ banking plan
 Create ‘savvy’ and empowered consumers, actively
combating predatory behaviours of other service
 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
 Mobility
 Language
 Trust
 Lethargy
 Literacy
 Confidence
 Credibility
 Efficiency
 Fit for purpose
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
To achieve 1m new members by 2019
Increased lending to £1bn by 2019
Make credit unions sustainable by 2019
 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
 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
 Care
 Housing providers
 Support system
 Intervention
 Employers
 Welfare to work
 Councils
 Mutuals
 Utilities
 Corporates
Technology – TCS
 Web based
 Immediate
 Responsive
 Future proof
 Global best in class IT solutions
Contact Centre
 Personal, telephone based small teams
 Service is rapid, prompt, and proactive
 Initially Birmingham
 7 days a week – flexible hours & multiple delivery
 Engaged and supportive
 Membership based
 Glasgow next, Liverpool, North East....
A managed service
Income comes in to the pot
from wages / universal credit
& automatically split into
Council tax
 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
Access points at all credit unions and trusted
partners for multi channel delivery
High visibility and easy to use overcoming digital
Members assistance plan – debt, legal and medical
emergency advice
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
 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
Is moving ......
Q&A please
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
 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,
 Offering a step change to the Industry with a tried and tested, robust, scaleable solution
which has a committed future