citysave credit union angela clements, ceo. overview introduction background – our communities...
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Citysave Credit UnionAngela Clements, CEO
OverviewIntroductionBackground – Our Communities 2012Social needs Barriers to accessing banking servicesAlternative banking – A way forwardsCommunity solutions 2015
Community 2012
DiverseBusyUsing a range of financial providersLittle savings bufferLow trust in bankingAt 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 & servicesPersonal 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 - visionEthical, affordable and accessible ‘jam jar’ banking
planCreate ‘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 overcomeMobility LanguageTrustLethargyLiteracyConfidenceCredibilityEfficiencyFit for purpose
Credit Union SectorIn the UK for almost 30 yearsSimilar background to Trade Unions &
Cooperatives 400 credit unions serving c1% of populationSavings £762m and lending £604mRun by members for benefit of members Each serves a common bond Not for profitRegulated by FSASavings 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
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 SolutionsAn entity made up of credit unionsAccessible, affordable and ethical banking
solutions delivered through credit unions United, credit union led solutionsPartnerships driven by credit union ethos to
deliver in its communitiesEach 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...CareHousing providersSupport systemInterventionEmployersWelfare to workCouncilsMutualsUtilities Corporates
Technology – TCS Web basedImmediateResponsiveFuture proof
Global best in class IT solutions
Contact CentrePersonal, telephone based small teamsService is rapid, prompt, and proactiveInitially Birmingham7 days a week – flexible hours & multiple
delivery channels Engaged and supportiveMembership based
Glasgow next, Liverpool, North East....
A managed serviceIncome 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 impactAccess 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 costsKey household bills that many struggle withUsing digital payment technologyChange bill payment structures & remove the
burden to the payer Work with payees – reducing collection costsWork with DWP on universal credit deliveryInnovative, joined up thinking and delivery ....
To drive out cost
Cost is always borne by the consumer
Community 2015Better money managementBetter payment solutionsRemoval of poverty premiumBranded and trusted financial alternative Good access to community based financial
institutionsIncreased saving ethic with less reliance on
borrowing to meet minor emergenciesAccess to affordable lendingAccess 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
50,000employees 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
theestablishment 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, Forrester
Offering a step change to the Industry with a tried and tested, robust, scaleable solution which has a committed future