1. South Tyneside Credit Union Ltd Gavin Hennessey, FCCA 10 th March 2011

2. South Tyneside Credit Union What is a credit union?

3. South Tyneside Credit Union What is a credit union? What are the benefits?

4. South Tyneside Credit Union What is a credit union? What are the benefits? Who can join?

5. South Tyneside Credit Union What is a credit union? What are the benefits? Who can join? Who are our customers?

6. South Tyneside Credit Union What is a credit union?

7. South Tyneside Credit Union What is a credit union? 1.Co-operative – run by the members for the benefit of the members

8. South Tyneside Credit Union What is a credit union? 1.Co-operative – run by the members for the benefit of the members 2.It is the same as a bank without the frills

9. South Tyneside Credit Union What is a credit union? 1.Co-operative – run by the members for the benefit of the members 2.It is the same as a bank without the frills 3.It is a not for profit organisation

10. South Tyneside Credit Union What is a credit union? 1.Co-operative – run by the members for the benefit of the members 2.It is the same as a bank without the frills 3.It is a not for profit organisation 4.It is run primarily by volunteers

11. South Tyneside Credit Union What are the benefits?

12. South Tyneside Credit Union What are the benefits? 1.It provides help to those who may be financially excluded from mainstream banks

13. South Tyneside Credit Union What are the benefits? 1.It provides help to those who may be financially excluded from mainstream banks 2.It encourages members to save

14. South Tyneside Credit Union What are the benefits? 1.It provides help to those who may be financially excluded from mainstream banks 2.It encourages members to save 3.It provides low cost loans

15. South Tyneside Credit Union Products available:

16. South Tyneside Credit Union Products available: Savings – encourage to save regularly

17. South Tyneside Credit Union Products available: Savings – encourage to save regularly Low cost Loans based on amount saved

18. South Tyneside Credit Union Products available: Savings – encourage to save regularly Lower cost loans based on amount saved Anyone can save – you don’t have to be financially excluded

19. South Tyneside Credit Union Products available: Savings – encourage to save regularly Lower cost loans based on amount saved Anyone can save – you don’t have to be financially excluded Anyone can borrow – you don’t have to be financially excluded!!

20. South Tyneside Credit Union Products available - Savings

21. South Tyneside Credit Union Products available - Savings Save regularly by: Calling in to a central office/collection point

22. South Tyneside Credit Union Products available - Savings Save regularly by: Calling in to a central office/collection point Payroll deduction

23. South Tyneside Credit Union Products available - Savings Save regularly by: Calling in to a central office/collection point Payroll deduction Standing order

24. South Tyneside Credit Union Products available - Savings Save regularly by: Calling in to a central office/collection point Payroll deduction Standing order Paypoint card

25. South Tyneside Credit Union Products available - Loans

26. South Tyneside Credit Union Products available - Loans Borrow from £50 to £5,000

27. South Tyneside Credit Union Products available - Loans Borrow from £50 to £5,000 Payback up to a period of 5 years

28. South Tyneside Credit Union Products available - Loans Borrow from £50 to £5,000 Payback up to a period of 5 years No set up charge or early repayment penalty

29. South Tyneside Credit Union Products available - Loans Borrow from £50 to £5,000 Payback up to a period of 5 years No set up charge or early repayment penalty Maximum interest rate - 2% per month

30. South Tyneside Credit Union Who can join?

31. South Tyneside Credit Union Who can join? 1.Restricted to those who either live or work within the borough of South Tyneside

32. South Tyneside Credit Union Who can join? 1.Restricted to those who either live or work within the borough of South Tyneside 2.This is our “Common Bond”

33. South Tyneside Credit Union Who can join? 1.Restricted to those who either live or work within the borough of South Tyneside 2.This is our “Common Bond” 3.The rules may be changing

34. South Tyneside Credit Union Who are our customers?

35. South Tyneside Credit Union Who are our customers? –Any individual

36. South Tyneside Credit Union Who are our customers? –Any individual –No joint accounts

37. South Tyneside Credit Union Who are our customers? –Any individual –No joint accounts –No businesses

38. South Tyneside Credit Union Who are our customers? –Any individual –No joint accounts –No businesses –No associations or similar

39. South Tyneside Credit Union Who are our customers? –Any individual –No joint accounts * –No businesses * –No associations or similar * * Legislation is being amended to allow the above

40. South Tyneside Credit Union Who are our customers? Mrs Alpha age 50 Part time employed Pays £10 per month in to her savings by payroll deduction from the Council Member of the Labour Party and is one of our volunteers Avid supporter of financial inclusion More likely to watch “Question Time” than “Question of Sport”

41. South Tyneside Credit Union Who are our customers? Mr Bravo age 68 Retired Has £500 in savings but borrows £160 to pay his car tax Widowed and calls in each week to have a chat with his “friends” at the credit union Sees the credit union as a break from the monotonous life he leads

42. South Tyneside Credit Union Who are our customers? Mr Charlie age 40 Full time employment Family man – 2 children and dog Saves regularly Borrows to pay for annual holiday Big supporter of credit union and encourages others to join Acts as treasurer on the board of the credit union Does other voluntary work with scout association Set up payroll deduction for his employer Reads The Times

43. South Tyneside Credit Union Who are our customers? Miss Delta age 20 On benefits with three children – different fathers Unemployed Doesn’t know how to save Has a loan of £1,000 which is constantly topped back up and getting higher Left school without any qualifications Has difficulty reading and writing Doesn’t understand money or how to budget

44. South Tyneside Credit Union Who are our customers? Miss Echo age 25 Employed in low wage job Borrowed from other door step lenders – just like the rest of her family Needs help with debt consolidation for £5,000 to pay off door step lenders Well educated but has fallen in to the trap of borrowing from one to pay another Her friends are also members with similar problems

45. South Tyneside Credit Union Who are our customers? Mrs Foxtrot age 46 2 teenage children Works part time Saves regularly Takes out a loan at Christmas, pays it back, takes another the following year Lives life to the full and makes sure her children don’t go without Traditional credit union member

46. South Tyneside Credit Union Who are our customers? Master Golf age 7 Pays 50p a week in to his savings account through school Part of our drive to open savings points in primary schools Likes to see his savings grow and takes some of it out when it is his birthday and at Christmas He has encouraged his parents to start saving with the credit union Very switched on to financial inclusion at a very young age

47. South Tyneside Credit Union Who are our customers? Miss Hotel age 30 Has benefits paid direct in to her savings account Calls down every week to withdraw the full amount – no savings Socialising 24/7 In and out of relationships and threatened with eviction twice in the last year Lives for the day and borrows from her family when benefits are late Turned down recently for a £300 loan due to her circumstances – the £4,000 of door step loans weren’t disclosed at interview

48. South Tyneside Credit Union Who are our customers? Miss India age 70 Receives state pension Some savings Brother terminally ill Borrowed to pay for travel costs to see her brother knowing she has very little surplus income to repay the loan Loan therefore repayable over a longer period to help her Risk to credit union as loan is not insured at 70 but the personal circumstances are more important than the recovery of the loan

49. South Tyneside Credit Union Who are our customers? Mrs Juliet age 41 Works full time Wants to re-train and borrows to cover cost of course Happily married with 3 children but hit mid life and wants to change direction Helps promote the credit union to family, friends and colleagues Uses the credit union for loans when needed – washing machine breaks, new carpets, school clothes Always repays the loans on time

50. South Tyneside Credit Union Alternatives –Provident Charges 272.5% apr Convenient as it is door to door service

51. South Tyneside Credit Union Alternatives –Provident Charges 272.5% apr Convenient as it is door to door service –Brighthouse Advertised interest is modest Increased by set up costs and insurance Customers only see what they pay weekly rather than the full cost

52. South Tyneside Credit Union Alternatives –Ramsdens/Money Shop/Cash Converter Cash cheques for a fee Pay day loans Pawnbroker

53. South Tyneside Credit Union Alternatives –Ramsdens/Money Shop/Cash Converter Cash cheques for a fee Pay day loans Pawnbroker –Argos Pre loaded card aimed at students Charge 252.5% apr Convenient

54. South Tyneside Credit Union Alternatives –Other credit unions Nothing in South Tyneside –Loan Sharks Major issue in South Tyneside –Other National company charging 2,350% apr – registered!!

55. South Tyneside Credit Union Looking to create a new “credit union”

56. South Tyneside Credit Union Now trading as ……………….

58. BRIDGES – Your Community Bank The way forward We need to: -

59. BRIDGES – Your Community Bank The way forward We need to: - Modernise

60. BRIDGES – Your Community Bank The way forward We need to: - Modernise Increase our membership

61. BRIDGES – Your Community Bank The way forward We need to: - Modernise Increase our membership Be more accessible and sustainable

62. BRIDGES – Your Community Bank The way forward We need to: - Modernise Increase our membership Be more accessible and sustainable Be a real alternative to other loan providers

63. BRIDGES – Your Community Bank The way forward We need to: - Modernise Increase our membership Be more accessible and sustainable Be a real alternative to other loan providers Stop thinking about the way it used to be

64. BRIDGES – Your Community Bank The way forward We need to: - Modernise Increase our membership Be more accessible and sustainable Be a real alternative to other loan providers Stop thinking about the way it used to be Work together to achieve a stronger credit union

65. Bringing People and Money Together The new Trading name for South Tyneside Credit Union Ltd