Post on 27-Dec-2015
transcript
AgendaAims of PartneringTrusted Partner conceptAccounts and servicesDelivery / kiosk networkBHSF – working in partnership
UK personal banking 9m adults without fit for purpose banking solutionPrepaid card market at c£650mHome credit & mail order £3bnArrears on utilities, rents and mortgages are
common
Poverty premium of £1k per annum
High cost, highly promoted and easy access payday lending sector now worth est £2bn
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
Citysave aim for 5% of Birmingham market in 5 years
Aims of Partnering
Birmingham 187 identified communitiesDiverse & busyCitysave needs to reach into communities Need to find ways to overcome barriers to
opening accounts including language, literacy, confidence, trust
Need to find ways to scale efficiently Need to deliver a wider range of products to
a wider range of membership Those most at risk of paying poverty
premium are least likely to engage
Aims of PartneringVision: Build the credit union network through successful
and individual organisations Strong visibilityTrusted brand operating centrally in our
communitiesAccessible to everyone who needs usAffordable, with high perceived value for moneyFit for purpose, modern solutions particularly for
younger adultsOperated for members requirementsSelf - Sustainable
For our membersBetter money managementBetter payment solutionsRemoval of poverty premiumBranded and trusted long term financial
alternative Good access to community based financial
institutionsLess reliance on lending & Saving ethic Access to affordable lendingAccess to first time buyer mortgages – shared
ownership and easy start options
Members of a modern financial co-operative
Partnering...CareHousing providersSupport systemInterventionEmployersWelfare to workCouncilsMutualsUtilities Corporates
Trusted Partner conceptPermission for another trusted organisation
to open accounts for their tenants, customers, clients
Account opening is done at partner locationsBy authorised and trained staffID is taken and verified
Overcomes all barriers to account opening
Trusted Partner ProcessInitial agreement is made Due diligence Management sign offTrusted Partner Agreement is entered into Implementation plan is set Trusted partner app is downloaded onto TP
systemTraining of front line staff – AML and Data
Protection
AccessibleDuring any relevant meeting, banking checklist is
used & if alternative is required, the account is opened – total time 2 minutes
Account appears on our system within 15 minutesA call is made from service centre within 24 hours Explain our service and credit union, Confirm T&C’sSet up payments in and out if requiredSet up savings planOrder cardSend welcome packDiary for next contact
Products and services4 transactional accounts planned from AprilSavings Manager with savings plan and debit
cardRent Direct / Power Direct – single payee,
savings plan and cardBudget Account – household bills, savings
plan & cardDebt Management plan – household bills,
debt payment plan, savings plan and cardAll have sort code and account number Regular payments and direct debit capability
Low cost, high impactAccess points at partners through Kiosks
high visibilitymultiple useeasy to use
Members assistance plan – debt, legal and medical emergency advice
Proactive callsRelationship managed by service team Email statements Secure on line areaMobile appMonthly text balances
A real alternative to banking – yesA solution to use of high cost lending....Range of affordable loans
Balanced and segmented loan booksClear credit risk strategiesRelationship lending - Instant decisions,
smaller loans, and revolving facilities
Credit unions promote thrift and financial well being
Responsible lending is based upon affordability
Some solutions – insulate from financial shocks in householdSimple savings plans for all – lets remove the
societal need to have to borrow every time you have a minor emergency. Savings plans from payroll should be a right.
Refer to advice and support agencies where more appropriate