Salford Credit Union 2021 Business Plan Achievements & Impact of Covid-19
Salford Credit Union's 2021 business plan focuses on helping members prosper through fair loans. Despite challenges from the Covid-19 pandemic, the union has adapted its operations, maintained financial stability, and grown its memberships and loans. Learn about their achievements, challenges, and strategic objectives.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
Salford Credit Union Salford Credit Union 2021 Awayday Image result for credit union images 22 July 2021 Credit Unions- People helping people
Business Plan Business Plan- - work done & achievements to date work done & achievements to date 1. 1. Updated Business Plan agreed June 2019 (2019 Updated Business Plan agreed June 2019 (2019- -2021) MISSION MISSION- -To help our members thrive and prosper by providing easy access fair and reasonable loans and a safe place for To help our members thrive and prosper by providing easy access fair and reasonable loans and a safe place for savings savings VISION- grow memberships and loans NEW Family Loan and more Payroll borrowers; reduced bad debts; efficient services & skilled team 4 Strategic Objectives, with key actions, Risks, assumptions and KPIs Business Plan live for 25 months Business Plan live for 25 months Covid has impacted for 16+ months 16+ months Rapid Review of Business Plan June 2020; performance and finance targets amended Performance reviewed Jan 2021 2021) 2. 2. 3. 3. Major achievements: focused, responsive and flexible Major achievements: focused, responsive and flexible SCU maintained services to members throughout Covid-19: Payments, savings & loans Regulatory targets and compliance achieved Financial stability maintained throughout Continued to update products and processes Staff, volunteers and members remained safe We re still trading: Provident, We re still trading: Provident, Brighthouse Brighthouseand other higher cost lenders have failed and other higher cost lenders have failed
Impact of Covid Impact of Covid- -19: 1 19: 1 1. 1. Operations Operations Brotherton House closed to public 18/03/2020 Regular Risk assessments & actions implemented, to ensure Covid safe working o Work From Home, staff rotas, Scenario planning, non-urgent work deferred o Hygiene and Social Distancing measures, team layout & screens, o meetings via zoom Services delivered online, phone & post (visits by exception) o Community Local Service points suspended; o community volunteers stood down 2. 2. Governance Governance Extra Board input:Weekly meetings- March to June Additional monitoring- used ABCUL templates ABCUL support & guidance accessed Zoom meetings challenging- lost two Directors in 2020. 3 new Directors joined subsequently
Impact of Covid Impact of Covid- -19: 2 19: 2 3. 3. Savings & Loans & Memberships Savings & Loans & Memberships SAVINGS- Previously stable; 2.2m @ June 2019; grown 34% to 2.95m June 2021 LOANS- Before Covid- had steady annual growth in loan numbers and value from 2016 o 6 months BEFORE Covid: Loans increased increased10% by value and 35% by number compared to previous year o 6 months AFTER Covid: Loans decreased decreased44% by value and 17% by numbers MEMBERSHIPS- new members down by 62% 6 months after Covid 16 members passed away- much higher than typical years Trends Trends- - Loans, Memberships and Loan book steadily increasing since launch of Family Loan, November 2020 4. 4. Finances Finances Loan Book shrunk after sustained growth since 2016- to 1.17m @ Oct 2020 (higher than that since June 2019) Bad Debts- initial increase- 15.5k Q2 2020 compared to 5k Q2 2019 54k Lloyds Foundation Grant (Oct 2019) supported Capital position Additional grants received, to support lending and viability, will ensure Capital Assets ratio maintained Trends Trends- - Loan book now back at pre pandemic levels of October 2019.
Adult Membership at year end Loans granted- number 4500 1900 1700 4000 TRENDS- End Year positions 1500 3500 1300 1100 3000 900 2500 700 2000 500 30.09.2017 30.09.2018 30.09.2019 30.09.2020 30.06.21 30.09.2017 30.09.2018 30.09.2019 30.09.2020 30.06.21 Loan income - projected to year end BDP - projected to year end 250000 60000 50000 200000 40000 150000 30000 100000 20000 50000 10000 0 0 30.09.2017 30.09.2018 30.09.2019 30.09.2020 30.06.21 30.09.21 30.09.2017 30.09.2018 30.09.2019 30.09.2020 30.06.21 30.09.21
Loan Book Apr18 June 21 1,350,000.00 1,300,000.00 TRENDS- Loan book and Family Loan 1,250,000.00 1,200,000.00 1,150,000.00 1,100,000.00 1,050,000.00 1,000,000.00 950,000.00 900,000.00 Family Loan Interest amount rec'd 7,000.00 6,000.00 5,000.00 4,000.00 3,000.00 2,000.00 1,000.00 - Aug-20 Sep-20 Nov-20 Jan-21 Feb-21 Apr-21 Jun-21 Jul-21
PLANNING- What could the future look like? UK Government & International? Salford City Council? Greater Manchester Combined Authority? Politics Impact of Covid . Growth/Decline/Inflation? Local/national investments, grants, charities? Local impact on jobs, unemployment, poverty Economy Demographic changes? Age, ethnicity, Social expectations- financial institutions Lifestyle/career attitudes Social Innovation Fintechs, others, automation Communication channels- opportunities? Cybersecurity challenges Technology Regulation changes?- CU Car loan opportunities? Potential claims- irresponsible lending? Conduct issues- vulnerable customers, DROs, Breathing Space Legal Regulations Members attitudes Climate change & Energy; health & workforce Environmental
Review of Strategic Objectives Review of Strategic Objectives Input Input Progress & Progress & performance Achievements & What hasn t worked (yet) Achievements & What hasn t worked (yet) Reflections, Risks & Opportunities Reflections, Risks & Opportunities performance Board Discussion Board Discussion What s Worked Well and Why? What s Worked Well and Why? What s Not? What s Not? What would success look like? What would success look like? What s needed now? What s needed now? Key risks? Key risks?
Objective 1 Review: grow the Objective 1 Review: grow the lending To assist in getting people out of debt by becoming the first choice for low cost loans, which long term should assist members in creating their own wealth and supporting their wider wellbeing. lending ACHIEVEMENTS ACHIEVEMENTS 1. Increase existing member loans i. Additional lending capacity in team ii. Turnaround times improved- same day Top ups iii. Pre-approved loan campaigns- helped in early Covid iv. Loan limit increased to 10k 2. Salford Family loan i. Phase 1 : 100+ existing members offered ii. Phase 2 : New members pilot iii. Phase 3 : launch Nov 2020, 400 + loans offered 3. Payroll Lending i. SCC Treasure Hunt Campaign -Jan 2020 effective ii. New arrangement with Pendleton Together iii. Covid limited scope for other targeted campaigns with existing partners and potential new partners W WHAT HATDIDN 1. DIDN T TWORK Loans to new members- non Family Loans i. High level of declines: quality of application WORKOR ORHASN HASN T TSTARTED STARTED 2. Covid 19 Emergency Loan i. Back on Track loans by referral from Partners, funded by Salford4Good ii. Low take up- wanted Grants not Loans 3. Sound pound- GM Payday loan product i. GM Just Borrow pilot underway at 2 CUs ii. Review due next quarter; initial feedback of high delinquencies iii. Nesta backed product still WIP, only initial work funded
Objective Objective 1: 1: Reflections, Risks & Opportunities Reflections, Risks & Opportunities 1. 1. Reflections Reflections i. Family Loan now key product: critical to membership growth- helping many more people o Important contributor to Loan Book, with low rate of defaults to date ii. For other non- members, our products not attractive or application too high risk Risks Risks i. i. Family Loan Family Loan- - RISKS RISKS: Potential complaints & claims about Family Loans o Need to review processes, materials and guidance to ensure Affordability and Ethical lending prioritised ii. ii. Payroll accounts Payroll accounts- - commercial lenders now offering products iii. iii. Wider lending market Wider lending market- - landscape transforming 2. 2. 3. 3. Opportunities Opportunities Family Loan Family Loan- - Key contacts at SCC now identified, to be followed up ii. ii. Provident Borrowers Provident Borrowers- - now being signpost to local Credit Unions iii. iii. Non member applications Non member applications: Engagement with Declines? Signpost? Family members? Savings? iv. iv. Payroll lending Payroll lending: Review product, develop campaigns with current Partners; broker new partnerships v. v. GM Loan product GM Loan product: under development vi. vi. Other new product development? Or new Markets? Other new product development? Or new Markets? vii. vii. Fair4All Finance ambitions: Fair4All Finance ambitions: Credit Unions scale up by factor of 10 i. i.
Objective 1: Grow the Objective 1: Grow the Lending Lending Board Discussion What s Worked Well and Why? What s Not? What would success look like? What s needed now? Key risks?
Objective Objective 2 2 Improve the marketing Improve the marketing To develop an improved marketing and promotion strategy, to raise awareness of improved products and processes and work with existing and new partners to deliver this ACHIEVEMENTS 1. Family Loan Promotions i. New web page and information ii. City Mayor video; Social Media focus iii. Local promotions 2. Member engagement i. Member surveys- 2020 ii. Salford FC engagement- Autumn 2019 3. Social Media maintained (Yellow Jigsaw) i. Paid for Facebook pilot increased web traffic 4. Website improvement i. 2020 refresh inc. Loan Slider & Money Management info 5. PR campaigns i. Summer 2019 campaign- non members and Payroll ii. 2020 Payroll Treasure Hunt campaign 6. CU4GM promotions i. Week of Awareness campaigns ii. Covid response campaign 15m to lend- high profile WHATDIDN TWORKORHASN TSTARTED 1. More website hits, more applications but most declined i. Scope to review website and loan products 2. Marketing Strategy not signed off i. Targets and outcomes not clarified ii. Limited guidance for Yellow Jigsaw input- their PIs & activities not reported to Board 3. Ambition for Director/volunteer with marketing skills not achieved i. Were approached by 3 potential Volunteers but support did not materialise
Objective Objective 2: Reflections, Risks & Opportunities 2: Reflections, Risks & Opportunities 1. 1. Reflections Reflections i. Limited investment in marketing- activities maintained but scope for more ii. Lack of agreed Strategy- may not be maximising impact iii. Does our marketing emphasise our ethical advantage? Important to millennials iv. Word of mouth very important 2. 2. Risks Risks i. ii. Most loans from existing members- insufficiently prioritized, may go elsewhere? New lenders with more effective marketing may take current and future members/borrowers 3. 3. Opportunities Opportunities i. i. Agreed Agreed Strategy & KPIs Strategy & KPIs- - would shape work of Yellow Jigsaw, team and Directors input ii. ii. New New Marketing Volunteer (Becky) Marketing Volunteer (Becky)- - received training, will be developing work programme iii. iii. Website Website- Scope to review iv. iv. Partners networks Partners networks- - local partners keen to promote us, including BAME partners v. v. Investment? Investment? -Additional paid marketing support?
Objective Objective 2: Improve the marketing 2: Improve the marketing Board Discussion What s Worked Well and Why? What s Not? What would success look like? What s needed now? Key risks?
Objective Objective 3 Update systems and processes 3 Update systems and processes We will continue to update our IT systems and internal processes to ensure we keep up with developments in the sector and provide our members with a modern and efficient service WHATDIDN TWORKORHASN TSTARTED 1. Incuto product- not implemented Technical, cost and delivery issues 2. Migration from Citrix not complete 3. CU Forms Affordability calculator not utilized 4. Annual Systems & Process Improvement plans not developed 5. Online withdrawals not available ACHIEVEMENTS 1. New Join & Borrow online form implemented 2. New Family Loan online form created 3. Web import to CU Forms improved 4. Seamless Migration of CHB to HMRC 5. Open Banking with Lending Metrics 6. Signable E forms system installed 7. More cost effective printers procured 8. PINs by Text solution installed 9. Successful promotion of online CU accounts 10. Online processes adopted for meetings: AGM, Board, team Keep in touch
Objective Objective 3: Reflections, Risks & Opportunities 3: Reflections, Risks & Opportunities 1. 1. Reflections Reflections i. Significant time invested in review of alternative operating systems and services but preferred solution not implemented- NB no direct financial losses ii. Able to upgrade existing systems, continued to improve member services and streamline processes iii. Other CUs facing this challenge: Fair4All Finance providing support iv. Team committed to continuous improvement- how to support more lean working? 2. 2. Risks Risks i. ii. Change of CU Operating system identified as biggest risk to a CU Need to keep up to date with tech developments: meet members expectations, maximize efficiency 3. 3. Opportunities Opportunities New CU operating platforms New CU operating platforms- - some recently launched and some due to market 2022 ii. ii. Digital transformation strategy Digital transformation strategy- - Review current arrangements and opportunities iii. iii. Member engagement services? Member engagement services? Apps etc available, to improve service without major risks iv. iv. GM learning GM learning- - Other GM CUs reviewing options v. v. Investment Investment Major IT transformation will be costly; opportunities to seek investment? i. i.
Objective Objective 3: Update systems & processes 3: Update systems & processes Board Discussion What s Worked Well and Why? What s Not? What would success look like? What s needed now? Key risks?
Objective Objective 4: Develop staff & volunteer team 4: Develop staff & volunteer team To support and develop our staff and volunteer team so they are happy, energetic, fully trained and possess the appropriate skills to work together to achieve our mission supported by effective internal processes WHATDIDN TWORKORHASN TSTARTED 1. Volunteer Coordinator retired 2. Most volunteers stood down- impacted on routine office tasks 3. Team meetings and one to ones impacted by Covid ACHIEVEMENTS 1. New staff inducted and trained following 2018 restructure 2. Maintained staff capacity during Covid including WFH 3. Increased team capacity by taking on Finance Manager tasks for 4 months 4. Appointment of new full Time Finance Officer 5. Staff trained on Family Loan and new processes 6. New Marketing volunteer recruited 7. Minimal Errors and complaints
Objective Objective 4: Reflections, Risks & Opportunities 4: Reflections, Risks & Opportunities 1. 1. Reflections Reflections i. Strong staff skills, experience and attitudes, exceptionally flexible ii. Coped well during Covid and with departure of Finance Manager 2. 2. Risks Risks i. ii. iii. iv. v. As business grows more staff capacity will be needed Staff salaries relatively low, some staff may want to move for higher wage Small team- limited career development opportunities Lack of Volunteer coordinator, only limited support to volunteers so may not stay? Loss of key staff from covid 3. 3. Opportunities Opportunities i. i. Succession planning Succession planning- - for key posts ii. ii. Kickstart Kickstart or Apprentice opportunity or Apprentice opportunity to add capacity iii. iii. Salary scales? Salary scales? as surplus increases, could develop graded posts to help retain staff
Objective Objective 4: Staff and Volunteer team 4: Staff and Volunteer team Board Discussion What s Worked Well and Why? What s Not? What would success look like? What s needed now? Key risks?
Objective Objective 5 Good Governance 5 Good Governance WHATDIDN TWORKORHASN TSTARTED 1. Lost three highly skilled Directors in 2020 2. Not able to recruit Treasurer 3. Chair resigned without notice 2021- SMF gap 4. Skills Analysis started but not completed 5. Scheme of Delegation not confirmed ACHIEVEMENTS 1. Monthly meetings-despite Covid 2. New SCU rules- approved 2020 3. Director Recruitment process refreshed 4. Risk Register reviewed at least Annually 5. 3 New directors recruited 6. Additional Supervisors recruited 7. Monthly compliance monitors
Objective Objective 5: Reflections, Risks & Opportunities 5: Reflections, Risks & Opportunities 1. 1. Reflections Reflections i. New Chair elected 20/7/21- appetite for fresh start and strong team work 2. 2. Risks Risks i. ii. Opportunities Opportunities i. i. Senior Management Functions Senior Management Functions- - review responsibilities ii. ii. Treasurer Treasurer- - new targeted recruitment campaign iii. iii. Succession planning Succession planning- - for key posts iv. iv. Compliance Officer Compliance Officer- - allocate role v. v. ABCUL Academy training ABCUL Academy training- - complete new programme vi. vi. Committee structure Committee structure- - to assign Director/volunteer roles vii. vii. Scheme of Delegation Scheme of Delegation viii. viii. Friends of Salford Credit Union Charity Friends of Salford Credit Union Charity- - potential future Directors? Effective governance critical for effective business May not make best use of Directors talents without clear governance 3. 3. review responsibilities
Objective Objective 5: Good Governance 5: Good Governance Board Discussion What s Worked Well and Why? What s Not? What would success look like? What s needed now? Key risks?
Objective Objective 6 6- - Sound Finances Sound Finances WHATDIDN TWORKORHASN TSTARTED 1. Surplus not sufficient for Dividend or investment 2. Planned Directors Finance training not delivered ACHIEVEMENTS 1. All regulatory targets met 2. All returns submitted on time 3. Second budget developed, reviewed for Covid 4. Grants secured to support Capital 5. Improved approach to BDP 6. Family Loans increasing average interest yield 7. Projected Year end loss less than budgeted for, grant to be released to achieve surplus and CAR> 5%.
Objective Objective 6: Reflections, Risks & Opportunities 6: Reflections, Risks & Opportunities 1. 1. Reflections Reflections i. Investment in Budget planning and F/T Finance Officer critical ii. Loan book built over previous years generating steady income 2. 2. Risks Risks i. Potential further impacts of Covid on incomes, Furlough, jobs ii. Fraud inc. online fraud iii. Ombudsman complaints- compensation? 3. 3. Opportunities Opportunities i. Funds available to lend! ii. Increased scrutiny of financial reports iii. Potential grants and investment
Objective Objective 6: Sound Finances 6: Sound Finances Board Discussion What s Worked Well and Why? What s Not? What would success look like? What s needed now? Key risks?
