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Citysave Credit Union Partnering Strategy

Citysave Credit Union Partnering Strategy. February 25 th 2013. Agenda. Aims of Partnering Trusted Partner concept Accounts and services Delivery / kiosk network BHSF – working in partnership. UK personal banking. 9m adults without fit for purpose banking solution

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Citysave Credit Union Partnering Strategy

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  1. Citysave Credit Union Partnering Strategy February 25th 2013

  2. Agenda • Aims of Partnering • Trusted Partner concept • Accounts and services • Delivery / kiosk network • BHSF – working in partnership

  3. UK personal banking 9m adults without fit for purpose banking solution Prepaid card market at c£650m Home credit & mail order £3bn Arrears 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

  4. 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

  5. Aims of Partnering • Birmingham 187 identified communities • Diverse & busy • Citysave 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

  6. Aims of Partnering Vision: Build the credit union network through successful and individual organisations • Strong visibility • Trusted brand operating centrally in our communities • Accessible to everyone who needs us • Affordable, with high perceived value for money • Fit for purpose, modern solutions particularly for younger adults • Operated for members requirements • Self - Sustainable

  7. For our members • Better money management • Better payment solutions • Removal of poverty premium • Branded and trusted long term financial alternative • Good access to community based financial institutions • Less reliance on lending & Saving ethic • Access to affordable lending • Access to first time buyer mortgages – shared ownership and easy start options Members of a modern financial co-operative

  8. Partnering... • Care • Housing providers • Support system • Intervention • Employers • Welfare to work • Councils • Mutuals • Utilities • Corporates

  9. Trusted Partner concept • Permission for another trusted organisation to open accounts for their tenants, customers, clients • Account opening is done at partner locations • By authorised and trained staff • ID is taken and verified • Overcomes all barriers to account opening

  10. Trusted Partner Process • Initial agreement is made • Due diligence • Management sign off • Trusted Partner Agreement is entered into • Implementation plan is set • Trusted partner app is downloaded onto TP system • Training of front line staff – AML and Data Protection

  11. Accessible • During 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 minutes • A call is made from service centre within 24 hours • Explain our service and credit union, • Confirm T&C’s • Set up payments in and out if required • Set up savings plan • Order card • Send welcome pack • Diary for next contact

  12. Products and services 4 transactional accounts planned from April • Savings Manager with savings plan and debit card • Rent Direct / Power Direct – single payee, savings plan and card • Budget Account – household bills, savings plan & card • Debt Management plan – household bills, debt payment plan, savings plan and card • All have sort code and account number • Regular payments and direct debit capability

  13. Low cost, high impact Access points at partners through Kiosks high visibility multiple use easy to use Members assistance plan – debt, legal and medical emergency advice Proactive calls Relationship managed by service team Email statements Secure on line area Mobile app Monthly text balances

  14. A real alternative to banking – yesA solution to use of high cost lending.... • Range of affordable loans • Balanced and segmented loan books • Clear credit risk strategies • Relationship lending - Instant decisions, smaller loans, and revolving facilities Credit unions promote thrift and financial well being Responsible lending is based upon affordability

  15. Some solutions – insulate from financial shocks in household • Simple 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

  16. Solutions from partnering: • Social landlords to provide indemnified loans for tenants – small revolving loans where rent is being collected • Work with CDFI’s • Insulate household from other financial risks.... • Brian Hall

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