1. Tess Pendle Head of My Home Finance

2. Why?  Response to members concerns  Needs of vulnerable tenants

3. The Credit Gap Doorstep/Illegal Credit Unions Banks

5.  Debt spirals  Rent arrears  Health/social issues Member concerns

6. Federation Response  Solvent & sustainable social business  Small sum (“micro”) lending  Long-term financial plan

7. Not for Profit “a social business...You are committed to solving a social problem with no intention of making personal financial gains. You cover all costs through your operations so that your business is self-sustaining” Muhammad Yunus, May 2010 Grameen Bank founder & Nobel Peace Prize Winner, 2006

8. Partners  HAs  DWP GF  Wates Giving  RBS  ELM

9. Governance  Independent CLG  Federation Founder Member  Board and Sounding Board

10. Launch

11. Pilot Wolverhampton Tamworth Walsall Erdington Dudley Birmingham City Worcester Northfield HerefordCoventry 38 Jobs

12.  Credit  Basic bank accounts  Savings accounts  Money advice Services

13. Banks + Credit Union CDFIs/MHF Home Credit (IML) Loan Shark The cost of credit today £6 to £13 per £100 £30 per £100 £75 - £100 per £100 £100 + per £100 Good credit history Share based & can’t take high risk percentage All high risk but no further subsidy required High risk, face to face, flexible, personal Female, 30-40 yo, welfare benefit, social housing

14. Customer Relations  Building Credit Scoring  Flexibility in Payments  Personal Contact  Early repayment no penalties  Arrears collection

15. Process  Initial contact  Appointment  Interview  Decision  Payment  (Money advice)

16. Roll Out

17. Roll out North East/West Alternative delivery models Closer HA and stakeholder involvement

18. So far…  Loans:4,007  Average loan £366  Aggregate lending £1.2 million

19. Savings Accounts 46%

20. Demographics gender

21. Demographics - age

22. Demographics - ethnicity

23. Analysis/Impact Typical MHF customer:  Borrows around £366  Currently repays £417 Better off by £249/year (against HC)

24. Analysis/Impact Based on average loan £366 if borrowing taken out at £82/£100: Total annual savings for clients roughly £996,000

25. Thank you tess.pendle@housing.org.uk