1. Northern Money Conference 2012 Six Years Back Six Years Forward Mark Lyonette Chief Executive ABCUL Credit Unions 2006 - 2018

2. Overview Growth and Coverage Legislation Savings, credit and access to cash Funding The Future Six Years Back Six Years Forward

3. Credit Union Growth 2006 - 2011 Membership up 58% Loans up 63% Savings up 70%

4. 2006 - New legislation proposed “We will identify the strengths and weakness of the current framework and produce recommendations for improvement and reform. “ Ed Balls MP – Economic Secretary to the Treasury, November 2006 2012 - Legislation comes into force “I want to see credit unions grow to meet the needs of their members and communities they serve. The LRO is key to that and I am pleased that it has now passed through Parliament.” Mark Hoban MP – Financial Secretary to the Treasury, November 2011 Legislation

5. Three key benefits of new legislation 1.Reaching out to new groups and making the most of partnerships 2.Organisations into membership 3.Interest on savings

6. Coverage 2006 – only 10 London boroughs with complete live or work coverage 2012 – all boroughs covered or will be within weeks - last few as a result of new legislation Rest of country, similar story – now very few geographical gaps

7. Savings 2006 Credit unions step in to offer Christmas Savings Accounts 2012 Most credit unions offer Christmas Savings Accounts – Farepak victims still battling for compensation

8. Credit snapshot 2006 -Squeeze just beginning -Crash still to come 2012 -Payday loans making the headlines -Other ‘sub-prime’ firms thriving

9. Access to cash 2006 ABCUL and 8 credit unions launch Credit Union Current Account Full ATM access, debit card etc 2012 Now 25 credit unions with more keen to come on board Over 50 credit unions offering Credit Union Prepaid Card

10. Funding 2006 Growth fund – 600,000 loans from over 100 credit unions, 2006 – 2011 Nearly £¼billion saved in lower credit costs 2012 £38 million Credit Union Expansion Project - encouraging collaboration and mainstreaming of credit unions

11. Credit unions in 2018? Customers Channels Products Operations Business Functions IT Credit Union Often narrow range of customers Limited range of channels lacking convenience Narrow range of products sometimes basic savings and loans only Operations often very manual, lack of integration between systems All credit unions perform each business function independently Range of IT software Branding: “Poor man’s bank”

12. Credit unions in 2018? Operations Business Functions IT Broader range of members, age, income, employment Wide range of channels including out of hours phone, internet, mobile, post office Full range of products including automated bill payment accounts, general insurances, business banking, mortgages Operations more automated, many shared along with business functions and IT platforms Modern, convenient, high quality, trusted, inclusive, mutual, alternative banking service

13. Northern Money Conference 2012 Six Years Back Six Years Forward Mark Lyonette Chief Executive ABCUL Credit Unions 2006 - 2018

14. Why isn’t the credit union sector bigger in Britain? Things people say..... 1.Poor legislation? 2.Credit unions don’t work in Britain, alien model? 3.Credit Union name is unhelpful, both credit and union can be negative words for many? 4.High cost lenders have more money to advertise than we have, we need a national advertising campaign? 5.Not enough central and local government subsidy? 6.And the truth....... 7.Most credit unions in Britain do not have a strong enough offering to attract most people in a highly competitive financial services market.

15. So what shall we do about it? Drive down costs Show up where others are not Recognise role of employers Work with other partners Recruit more talent to board & management Share costs of infrastructure and development

16. Credit unions in 2018? Customers Channels Products Operations Business Functions IT Credit Union Often narrow range of customers Limited range of channels lacking convenience Narrow range of products sometimes basic savings and loans only Operations often very manual, lack of integration between systems All credit unions perform each business function independently Range of IT software Branding: “Poor man’s bank”

17. Credit unions in 2018? Operations Business Functions IT Broader range of members, age, income, employment Wide range of channels including out of hours phone, internet, mobile, post office Full range of products including automated bill payment accounts, general insurances, business banking, mortgages Operations more automated, many shared along with business functions and IT platforms Modern, convenient, high quality, trusted, inclusive, mutual, alternative banking service