1. South Lakeland Credit Union save, borrow, plan for tomorrow South Lakeland Credit Union Update March 2015

2. South Lakeland Credit Union save, borrow, plan for tomorrow Background Many people struggle financially in Cumbria. Cumbria CCs Financial Inclusion strategy identifies: 10% of Cumbrian residents have no bank account 70% of social landlord tenants have no insurance 15% of children are living in poverty 40% of people run out of money at the end of every week or month 70% have no savings to cover a drop in income or unexpected events

3. South Lakeland Credit Union save, borrow, plan for tomorrow Background CUs in Cumbria have the potential to be a key delivery vehicle in helping tackle financial exclusion There are now 6 CUs in Cumbria, and 1 study group The South Lakeland CU Study Group was set up and officially launched 2011 Now (after PRA approval) moving towards a launch in summer 2015

4. South Lakeland Credit Union save, borrow, plan for tomorrow What are CUs? CUs are social enterprises that provide financial services They are owned and run by the members they serve and offer convenient savings products and low cost loans Banks are profit driven and owned by shareholders. Legally, CU members must have something that joins them together – a ‘common bond’ SLCU’s Common Bond includes anyone who lives,works or studies in South Lakeland – including Kendal, Ulverston, Windermere, Grange, Sedbergh, Coniston

5. South Lakeland Credit Union save, borrow, plan for tomorrow Who are CUs for? CUs are open to everyone who lives or works in the area they serve regardless of level of income Successful CUs attract members from across a range of personal financial circumstances We aim to help people wanting car loans or house improvements as much as those needing short term loans

6. South Lakeland Credit Union save, borrow, plan for tomorrow Where we are now ? Funding secured for first 3 years of operation Offices available at Bridge Mills, Kendal 2 Volunteer meetings organised, more planned Training events planned Manager could be recruited in April Discussions starting with community groups about ‘outreach’ facilities in Kendal

7. South Lakeland Credit Union save, borrow, plan for tomorrow Where do we want to be? With prompt PRA approval we hope to open for business in July 2015, here are some of our targets 300 members in year 1, and 1000 in 5 years Savings in excess of £300,000 in year 1 230 loans processed in year 1

8. South Lakeland Credit Union save, borrow, plan for tomorrow What we can offer? A potential dividend on savings Competitively priced loans A real alternative to the ‘loan sharks’ Keep money in the local economy

9. South Lakeland Credit Union save, borrow, plan for tomorrow Comparison of loans CURRENT COST TO BORROW £500 OVER 6 MONTHS FROM DOORSTEP LENDERS IN SOUTH LAKELAND Lender Total APR Repaid Provincial Funding Ltd £850 229.5% Shopacheck FS £875 254.4% Provident Personal Credit £910 272.2% LoansAtHome4u.co.uk £820 281.5% Source : www.lenderscompared.org.uk 11/03/2015www.lenderscompared.org.uk There’s a cap on the interest Credit Unions can charge on their loans of 3% a month or 42.6% a year APR

10. South Lakeland Credit Union save, borrow, plan for tomorrow Is my money safe? CUs are Regulated by the Financial Conduct Authority & Prudential Regulatory Authority Individual Savings of up to £85,000 per person for each authorised firm are protected through the Financial Services Compensation Scheme

11. South Lakeland Credit Union save, borrow, plan for tomorrow How can you help ? Support the project and become a member of the SLCU Help us recruit volunteers for the CU Follow Archbishop of Canterbury Justin Welby’s lead and help to tackle high interest lending. Promote the SLCU through your connections This will help us become self sustainable and grow

12. South Lakeland Credit Union save, borrow, plan for tomorrow Volunteering Can you help us with any of these tasks: recruiting members customer services for members collecting deposits from members deciding on lending to members coaching & training for board, staff and volunteers financial management book-keeping and banking operating and developing a business marketing and communication information technologies community development fundraising

13. South Lakeland Credit Union save, borrow, plan for tomorrow Thank You for listening Any Questions ?