Celebrating our 30th Anniversary in 2017 Putting people before profit
Foreword Foreword From small beginnings 30 years ago, Leeds Credit Union has become a pioneer in its field. This briefing summarises the achievements of Leeds Credit Union. More importantly it indicates our longer term determination to grow and become an even more significant financial social enterprise and community bank. I am proud that Leeds Credit Union is celebrating its 30th Anniversary this year. Leeds Credit Union demonstrates that there is a clear credit union difference. We are different from high-cost lenders on the one hand, and shareholder-led interests of the big banks on the other, by truly putting our members first. We still hold a place of trust with our members and our mutual, educational and volunteer principles set credit unions apart. From small beginnings 30 years ago, Leeds Credit Union has become a pioneer in its field. Over the years we have united with a number of other credit unions in Leeds to be one of the first to have a city-wide field of membership. More recently White Rose Credit Union merged with Leeds Credit Union so that we now cover Wakefield too. We now also extend across the Harrogate and Craven local authority areas. Among a wide range of creative approaches, we have grasped the opportunities presented by the credit union Legislative Reform Order to extend our common bond. This has allowed us to develop key partnerships at a national as well as a local basis, and to enter enterprise lending. I am extremely proud that we have a skilled and commercially minded Board and Senior Management team that has delivered on its promises consistently over the last eight years. This proven track record demonstrates a sound foundation on which to build, a foundation made all the stronger by our marvellous staff group, whose commitment is extraordinary. This briefing summarises the achievements of Leeds Credit Union. More importantly it indicates our longer term strategy and vision to grow and become an even more significant financial social enterprise and community bank. We know we can do more to deliver ethical, locally-rooted services to support our members, in a way that only a credit union can deliver. Through growth we will also develop new employment opportunities across a range of skills. Looking to the future, challenges will remain in providing vital loans and savings services, in helping those who struggle to repay loans with budgeting support and repayment plans, in keeping pace with the march of technology, and matching the speed of the competition. It is only by meeting these challenges head on that our credit union and our members will continue to prosper. Vision needs a practical application if it is to matter. We benchmark our operational performance against other major credit unions. We pay close attention to key banking ratios such as the cost income ratio. We monitor innovation and developments wider than the credit union world alone. At the member level we monitor the quality of service we provide; we have welcomed the independent reviews of our performance undertaken by partners. Our operational goals are stretching. Our aspiration to be the best credit union in the UK is a challenge, though by these words we actually mean rather more. That is, what it will take for us to be an even more material financial services provider in the wider highly competitive environment. We have tremendous partners. Our Local Authorities and Housing Association partners really care about Citizens and residents and their financial well-being. Our employer partners are dedicated in helping their employees to save. Together with activists, volunteers and straightforward enthusiasts they all play a fantastic part in the practical delivery of credit union services in the many communities that we serve. Within our operation we have an Achieving Excellence programme for every member of staff, our Investor in People accreditation has recently been reaffirmed and we are a Living Wage accredited employer. In systems and processes we are constantly refining the tools we have and seeking new ways of working. In the current programme we have a range of exciting developments ranging from the mundane but important to the strategic. All this means I am confident that Leeds Credit Union financial services for the benefit of our existing members and those who join in the future. Chris Smyth, Chief Executive Isobel Mills CBE, President
Our impact over the last 10 years Key facts 265m cash issued via our community branches 36k members 16m deposits 11m loans 20m assets 50 staff 9 branches 110,000 loans issued Every 1 spent on financial inclusion work is worth 9 for the community** *The saving that credit union borrowers make when compared to the higher interest rate of a principal doorstep lender (some high-cost lenders interest rates are considerably higher) and assumes this saving has been achieved on 75% of the Credit Union s lending. **Research by Salford University for Leeds City Council 2009. Our impact in the last 10 years alone 92m worth of loans issued 47m interest saved to the community* Our values Affordable credit Savings and thrift Care of members money Education Alleviation of poverty Our highlights Spectacular business turnaround Year on year growth Doing what we say track record of achievement First class governance Exceeding regulatory ratios Successful integration of Wakefield Credit Union Winning new partners Channels Our challenges Growth Awareness Old systems Pace of competition and speed of digital media developments in banking Our products Savings Instant Access Account High Balance Savings Account Young Savers Account Christmas Club Account Interactive website Transactions Pre-paid Visa Card Budget Account Online banking Loans Personal Loans from 250 to 20k Business Loans Telephone Mobile Online Post Branch
Our vision: to be the best community credit union in the UK Our members What makes us different? Mutuality Member owned Community focused No shareholders with special privileges Educational aim Our savings: Straightforward and fair Our aims by 2020 Reach a wider audience to be the institution of choice for 5% of the Leeds and Wakefield population Increase dividend Build on financial soundness so we can invest in delivering better services Increase choice in retail financial services Leeds Credit Union currently has over 36,000 members located throughout the UK Scotland North East Our Loans: Affordable N. Ireland Yorkshire We will never add to unmanageable debt No hidden charges Lancashire How we will get there Wales E. Anglia Midlands London Process and Platform Green Deal Schemes Harrogate & Craven Developing the Core LEEDS & WAKEFIELD Project Innovation Centre Business Lending Employment Developing Key Partners Flexibility and Capability Wakefield Social Return on Investment Products and Services Housing Solutions Employer Savings Schemes Member satisfaction Leeds Credit Union 72.6% Co-op Bank 69% Santander Bank 62% Lloyds Bank 59% Barclays Bank 58% HSBC Bank 56% Royal Bank of Scotland (RBS) 54% Overall industry average 65% Leeds Credit Union results from Affinity Sutton Group survey of members summer 2016. Bank results from Which? survey December 2016. South West South West South South East Members also say: 83.5% are likely/very likely to recommend Leeds Credit Union 61.4% have already recommended the credit union 81.9% rated Leeds Credit Union service as good/very good
Case studies Financials What a difference a year makes This time last year Jane was feeling a bit sick. Fulfilling her daughter s Christmas wish list seemed like a very expensive, impossible task. The feeling of dread started creeping up on me in late September. During October I tried to squirrel away spare pennies but by November the fund was looking bleak and I was feeling a bit like Tiny Tim. In the final hour I managed to outsource the big requests to generous grandparents. Christmas was delivered on a shoe string. This year, things are looking up after I decided to join Leeds Credit Union and start a Christmas Saver account. I chose a monthly amount which was taken directly from my wages before it was swallowed up by bills, and this month I was able to access my Christmas nest egg. They focus on helping their members save, borrow and receive affordable financial services instead of maximising corporate profit like big banks. 000s Balancing the books 4000 3500 3000 2500 2000 1500 1000 2011 2012 2013 Income Expense 2014 2015 2016 000s Loans on the up 1 1000 10500 10000 9500 9000 8500 8000 7500 7000 6500 6000 2011 2012 2013 2014 2015 2016 In the world of personal banking, Credit Unions are the good guys. They act like banks, offering the same services but the big distinguishing factor is that they are non-profit institutions. They focus on helping their members save, borrow and receive affordable financial services instead of maximising corporate profit like big banks. For me it was a great way to save. I like the fact that the Credit Union passes on savings from their nonprofit status to offer dividends on savings and lower fees. This year my daughter and I are going to Paris for Christmas, what a difference a year makes! How savings saved the day Helen was recently granted a top-up loan with Leeds Credit Union and had forgotten that there was a savings element added to her monthly loan repayment. Leeds Credit Union has a policy of encouraging members to save even if it s only a small amount that the member can afford. Helen realised that she had some savings already for the first time in her adult life she was delighted. Helen then increased her monthly repayment considerably so that at the end of her new loan repayment period she would have even more savings. Helen also persuaded a friend not to use a high interest lender and to save with the Credit Union. Net loan income 000s Loan book income continues to grow 1600 1400 1200 1000 800 600 400 2011 2012 2013 2014 2015 2016 Reserves 000s Strengthening the Credit Union 2600 2400 2200 2000 1800 1600 1400 1200 1000 800 600 400 2011 2012 2013 2014 2015 2016 As a result of Helen s experience, loans have been granted to other members of her family, who also now save at the same time. Helen has also persuaded a friend not to use a well known high interest lender, and the friend began to save with the Credit Union for 3 months before applying for a loan.
A brief history How you can help August 1987 Originally operating from a broom cupboard in Leeds Civic Hall, the credit union began life as the Leeds City Council Employees Credit Union, offering savings and loans to local authority staff. Leeds Credit Union is on a journey. If you would like to take part in making Leeds Credit Union an even more significant financial social enterprise and community bank, offering a real alternative and additional choice on the high street, then here are some ways to be involved: 1997 We become a community credit union, opening our doors to everyone living or working in the local authority area. We now operate in 9 branches across Leeds, Wakefield, Harrogate and Craven with a number of additional information points across the district. 2012 We take advantage of new credit union powers which allow us to have multiple common bonds. We win the business of a number of corporate partners increasing our membership numbers. 2007 Leeds City Credit Union wins the Social Enterprise of the Year Award at the annual awards event for Yorkshire and Humber. We gain Investor in People accreditation and become a living wage employer in 2016. 2014 The first Your Loan Shop opens in Leeds, giving us a high street presence to help combat high-interest lenders. White Rose Credit Union merges with Leeds City Credit Union extending our common bond into Wakefield and substantially increasing our membership. 2015 Following the merger with White Rose we extend our common bond into North Yorkshire with Harrogate and Craven. s. 2015 2016 We refine our visual identity, shorten our name to Leeds Credit Union and upgrade our online presence and back office systems. We launch an online system to support our free school savings club to raise the importance of saving. We now operate in 38 schools across the district. 2017 We celebrate our 30th year. By investing for philanthropists, partners and businesses By saving by individuals By encouraging others to save by opening staff savings schemes By partnering in any way to use our services By influencing Government and others By volunteering By spreading the word via journalists, commentators, Twitter and Facebook followers (find us at @leedscredunion on Twitter and search Leeds Credit Union on Facebook) By getting in touch today to discuss any of these opportunities email us at weare30@leedscreditunion.co.uk
Leeds Credit Union, Westminster Buildings, 31 New York Street, Leeds LS2 7DT Tel: 0113 242 3343 services@leedscitycreditunion.co.uk www.leedscreditunion.co.uk Putting people before profit and are trading names of Leeds City Credit Union Ltd. Leeds City Credit Union Ltd is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority firm reference number 213369. This information may be checked by visiting www.fca.org.uk or www.bankofengland.co.uk/pra.