First Rate Credit Union Ltd. (FRCU) Presentation to. BAE Systems Apprentices. 27 February 2018

Transcription

1 First Rate Credit Union Ltd. (FRCU) Presentation to BAE Systems Apprentices 27 February 2018

2 The team here today Martin Newton Joe Taylor Connor Keefe Kev Benfold Les Walker Tim Thomas

3 Introduction & Our history. Employees & Volunteers (roles). Our service Savings & Loans. Current status / key facts. How to find us, office locations / opening hours. Questions & Answers.

4 Introduction - 1 What is a Credit Union. A not for profit co-operative organisation providing savings and loans for BAE Systems employees. Who are the First Rate Credit Union? The Credit Union is owned by its members, not BAE Systems. Every Credit Union has to have a Common Bond with it s members, ours is employees of BAE Systems and their families. BAE Systems cooperates with and supports the Credit Union.

5 Introduction - 2 We are regulated by the Financial Conduct Authority, FCA and the Prudential Regulation Authority (PRA), underpinned by the Financial Service Compensation Scheme. Not for Profit - Not for Charity - But for Service. Credit Unions are encouraged by the UK Government, particularly in the current economic climate as part of a financial inclusion initiative, to encourage responsible financial behaviour. There are generally two types of Credit Unions o We are an employee Credit Union, with a mutual common bond of employment by BAE Systems. o There are also community Credit Unions, which generally rely on sponsorship and grants and may be based on e.g. residence or Church congregation.

6 Our history Not for Profit - Not for Charity - But for Service. Formed in 1982 registered as British Aerospace (Warton Division) Credit Union Ltd Changed name to Planemakers (Warton Division) Credit Union Ltd Expanded common bond, as FRCU, to cover all UK employees of BAE Systems st Anniversary opening of the Warton office (W310) Awarded Chairman s Bronze Award for Innovation and Implementation Established Management Agreement with BAE SYSTEMS th Anniversary, opening our Samlesbury office (S204) New office opened in Barrow March FRCU achieves 12 million in assets (savings & loans)

7 Introduction & Our history. Employees & Volunteers (roles). Our service Savings & Loans. Current status / key facts. How to find us, office locations / opening hours. Questions & Answers.

8 Employees & Volunteers Office Manager: Les Walker (W) Compliance Joe Taylor Office Assistants Melek Thomas (W) Connor Keefe (W) Jackie Lofthouse (S) Nick Caine (B) John Swainson (B) Loans Officers Kevan Benfold Ben Aspinall Kevin Mortimer Tony Olsen Treasurer John Jones Complaints Officer TBC First Rate Credit Union AGM & nominations Elaine Birtle Money Laundering Officer Internal Audit Steve Cameron Hilary Lee Secretary Tim Thomas Chairperson Martin Newton President John Geraghty Training Steve Cameron

9 Volunteers (example roles) Who runs the Credit Union if not BAE Systems? Volunteers from current and retired BAE Systems employees. Roles include Board of Directors. Treasurer. Internal Audit. Risk & Opportunity. Compliance. Secretary. Staff & Volunteer - Training & Development Loans Officer / Credit control. (examples on next slides)

10 Savings & Loans Joe Taylor Martin Newton Connor Keefe Kev Benfold Les Walker Tim Thomas

11 Introduction. Our history. Employees & Volunteers (roles). Savings & Loans. Current status / key facts. How to find us, office locations / opening hours. Questions & Answers.

12 Savings & Loans Not for Profit - Not for Charity - But for Service. Please Note we (FRCU) are not authorised to provide financial advice to you but we can explain some of the jargon, provide you with some useful tips to keep you from falling for some traps and help you make informed decisions regarding savings and loans. Lets start with a simple quiz Q1. What is an Annual Percentage rate (APR) and the Annual Equivalent Rate (AER)? Q2. What would the advertised APR on a loan be, can it be different based on your age?

13 Common Terms Not for Profit - Not for Charity - But for Service. APR This is from the regulator, the Financial Conduct Authority (FCA): "APR stands for the Annual Percentage Rate of charge. You can use it to compare different credit and loan offers. The APR takes into account not just the interest on the loan but also other charges you have to pay, for example, any arrangement fee. All lenders have to tell you what their APR is before you sign an agreement. It will vary from lender to lender." AER The AER, or Annual Equivalent Rate, is the official rate for savings accounts, and is designed to allow easy comparisons as it's meant to smooth out the variances between accounts (it's the equivalent of the APR for debts). The idea is it shows what you'd get over a year if you put money in the account and left it there. The alternative is the gross rate, which is the flat rate of interest that's actually paid. extract from - Money Saving Expert

14 Bank APR example Dec 2017 Typically when you enter your age the APR will increase to 18% - 25%, the bank will say for illustrative purposes

15 Quiz Q5. What is a credit history, who uses it? Q6. Why do you think a credit history is important? Now let s provide a summary some of the key things that a typical Credit History covers

16 Your Credit History Not for Profit - Not for Charity - But for Service. Why is it important? How easy is to damage? What does it contain about you (Electoral register)? Who uses it? Why do we use it? When is it typically used?

17 Loan examples Not for Profit - Not for Charity - But for Service. Most popular, pay-off their car hire purchase deal. HP or PCP deals can be extortionate High & confusing APR rates for the amount they are paying back to the lender. Lets look at real life recent example

18 Scenario A young member decided he wanted a car and went along to a dealer. He found a car on the forecourt priced at 6,300, Signed the finance agreement and drove away. Was paying per week, and the total repayable over four years was 13,800. He found he was struggling to pay this, he asked around, and a work colleague directed him to the Credit Union. He joined and asked about a loan of 6,300 over four years and found he would be paying 158 Monthly the total payable was 7,597 a saving of 6, A good rule for life is always compare, never take the first offer. See where you can get a better deal.

19 Savings & Loans Not for Profit - Not for Charity - But for Service. Summary Hints & Tips As a BAE Systems employee, you are able to save using payroll deductions and access our low cost loans. Take care of your credit history especially your mobile phone account. Avoid payday loans and high interest loans from high street lenders. Please come and speak to us, before obtaining a loan through any of these loans companies. Our loans are fixed rate, and the loan rate that you are quoted at the beginning of your loan, is the loan rate that you are paying at the end of it. No hidden fees, or increase in loan rates.

20 FRCU visit the web site to join, save or borrow. All direct from your payroll.

21 Introduction. Our history. Employees & Volunteers (roles). Savings & Loans. Current status / key facts. How to find us, office locations / opening hours. Questions & Answers.

22 Current Status Not for Profit - Not for Charity - But for Service. Membership of circ in Jan & is growing. Members take advantage of savings and loan repayment via payroll deduction. We provide safe, secure and easy internet access to your account. Members qualify for life protection cover. Our main business is at Warton / Samlesbury and Barrow in Furness, but we also have members at other UK sites and abroad. FRCU is a Member of the Association of British Credit Unions Ltd, ABCUL.

23 Membership and dividend statistics. Membership proportions approx. o 45% at Warton o 20% at Samlesbury o 15% Barrow? o 15% other sites o 10% retirees/family Dividend = interest on savings o 2% 2016 / o Previously has been circa 3.5%

24 Sponsorship BAE Systems Veterans Keswick to Barrow Iron Man Three Peak Challenge

25 Introduction. Our history. Employees & Volunteers (roles). Savings & Loans. Current status / key facts. How to find us, office locations / opening hours. Questions & Answers.

26 How to find us? Not for Profit - Not for Charity - But for Service. Visit our web site via the MAI intranet o Select the A Z and Credit Union Or access us via Facebook.com/firstratecreditunion Twitter

27 Samlesbury location / opening hours. We are located within S204 building Tuesday to Thursday 09:30hrs to 14:30hrs. Opposite Avis car hire office. Tel. No: Address jackie@firstratecu.co.uk Website Address: We look forward to seeing you.

28 Can you help us? Not for Profit - Not for Charity - But for Service. Online application form to your address. Tell your colleagues. Click & Print a poster for your work area.

29 Thank you for listening and we will be happy to take any questions?