JOHN’S BLOG – FEBRUARY 2017

February was another hectic month for our credit union.  As well as welcoming 200 new members and junior savers into our “family” we also forged some exciting new partnerships:

FAIRBANKING FOUNDATION HIGHLIGHTS “SAVE AS YOU BORROW”

I was interested to learn that the Fairbanking Foundation has launched a new report titled Save as You Borrow – Credit Unions Creating Good Habits.  Using research by Ipsos MORI into the behaviour of 1,200 borrowers from seven different credit unions, it shows how credit unions turn borrowers into savers.

Apparently two-thirds of the borrowers surveyed had no savings when they first took out a credit union loan, and had found it impossible to put money aside.   But as a result of using a Save As You Borrow credit union product, they now planned on saving regularly.

The positive long term impact of Save As You Borrow is underlined by the fact that only a quarter of respondents were saving regularly before taking out their credit union loan, but 71% said they would continue to do so after paying it back.

The report also shows how the credit union approach - helping people to budget and assisting people who have problems - breeds strong loyalty to the credit union among its members.

It is a very valuable report as it demonstrates the benefit of supporting and partnering with credit unions - particularly for employers, since the creation of a savings culture is the best defence against problem debt.   Here at HEYCU we are always pleased to talk with any employers who may be interested in working with us to provide their workforce with a really powerful staff benefit – savings and loans by payroll deduction.

NEW DWP WORKPLACE CHAMPIONS RECRUITED

Our Payroll Partnership with the Department for Work & Pensions is a good example of what can be achieved.  In just eight months, we’ve recruited over 800 members to HEYCU from the DWP staff across Yorkshire, the North East and in Scotland.   As well as saving regularly with us direct from their pay, many of these new members have discovered our highly competitive loan deals.

We had a great response to a recent Newsletter that we sent to our DWP members, and were thrilled to recruit six new Workplace Champions.   Our Champions are members who agree to post credit union recruitment material on the workplace notice boards, and to “talk us up” among their workmates. 

A phone call to welcome our new Champions often reveals some interesting stories.  Lynsey, who works at the DWP in Clydebank, told me that her parents – Pat and Agnes McGowan - had both been active in credit unions:  “I actually grew up in and around credit unions as my parents helped to set up and run Tail O’the Bank Credit Union in Greenock for 25 years.  My dad was the chairman and my mum the treasurer and as a child I was often taken along to ABCUL AGM’s and many credit union events!”  Lynsey said she was excited about being part of the credit union movement within the DWP and looking forward to updating her knowledge and spreading the word.  I hope to visit your office next time I am in the area, Lynsey.

LLOYDS BANKING GROUP DEVELOPMENT FUND

Again on the partnerships theme, we were very pleased to be one of 21 credit unions to be awarded a grant from the Lloyds Banking Group Development Fund, to support our future growth. 

As part of its commitment to Helping Britain Prosper, Lloyds Banking Group have awarded a further £1 million in grants to strengthen the financial position of credit unions and give them the capacity to develop new ways to grow, become sustainable and provide extra much-needed responsible lending to communities across Britain.  The Fund was established in 2014 and is run in partnership with the Credit Union Foundation.  Award recipients are selected by an independent grants panel.

Together with Sue Nicholson, one of HEYCU’s Directors, I went to the Houses of Parliament to receive our award, which will help our credit union to expand our services to more communities in the Humber Region as well as serve more employers and their staff. 

It was good to meet Robin Bulloch, Managing Director of Lloyds Bank & Bank of Scotland, at the event to give us the chance to say “thank you” for our award, also to catch up with Mark Yarwood, our regional Lloyds contact and guests from other credit unions.   We were thrilled that our local MPs Nic Dakin, Karl Turner and Martin Vickers popped in to see us in the impressive setting of Westminster.

RURAL AREA PROJECT SET TO BEGIN

We have started work on a new partnership with the Goole & Selby Methodist Circuit to extend our reach to people living in the rural area between the two towns.  To begin with, we are focusing on the communities of Hemingbrough and Howden, aiming to show how credit union membership and services help to support family life.  So, watch out for us popping up at playgroups, children’s centres, schools, sports clubs, community centres, libraries, surgeries, in fact anywhere that families spend their time.   Jo, our energetic Goole Development Officer, will be working on the project and we’ll be looking to recruit some volunteers to help us spread the word and assist with running savings clubs and credit union contact points in those communities.   If you would like to help, please get in touch.

LOAN SHARKS CAMPAIGN HITS HOME

Our campaign, working with the Illegal Money Lending Team, to warn about the dangers posed by loan sharks (illegal lenders) and to make people aware of responsible lending alternatives, has really made an impact.   Our original target was to encourage 50 people to either start saving with us or (if already members) to open another account such as a Christmas or Holiday Saver or an account for a Junior.  However, we seem to have considerably exceeded that figure and very soon lots of members in the Goole and Greatfield areas who sent in Shop the Shark vouchers will have £25 bonuses credited to their savings account!

Sid the (friendly) Shark caused quite a stir when he put in anappearance at a special assembly at Boothferry Primary School and went walkabout at Greatfield Shopping Centre and in a large Tesco store. Our current campaign concludes with a children’s poster colouring competition with some exciting shark-related prizes!  We are pleased that the Team’s hard work is paying off, as there have been several loan sharks prosecuted around the country recently,   which is great news for those communities.

As the campaign has been so popular, and the message about avoiding loan sharks is clearly hitting home, it won’t be the last we have seen of Sid the Shark, so watch for him coming to your area in the future. 

NEW PARTNERS

We’d like to say a big “welcome” to Acre Heads Primary School at Anlaby, the latest school in our area to open a Pennies 2 Pounds school bank for the children and families in the area.  It got off to a promising start in 28 February and runs every Tuesday morning before the school day begins.

It was also a pleasure to run a member recruitment session at East Riding College in Beverley for the staff based there.  The new Flemingate campus is a wonderful building and the huge foyer and café area proved an ideal busy location for our promotional stand.   Welcome to the new members who joined – and don’t forget to urge your colleagues to do the same!

OPPORTUNITIES IN NORTH EAST LINCOLNSHIRE

I spent an interesting day in Grimsby recently with Steve Johnston, who is employed as a Partnership Officer to look for opportunities for credit union development in the area.  The local credit union (not part of HEYCU) unfortunately closed down in 2016 but its services are much missed by the population.  Steve is helping us to devise a plan to work with the community to develop a sustainable credit union presence for North East Lincolnshire.  

I was very impressed with Centre4, a community building on the Nunsthorpe housing estate, which houses an amazing variety of services all under one roof.  With a trained volunteer team, it would be possible to run a regular contact point there, to provide safe savings and responsible loans for the local community.   We’re keen to hear from anyone who would be interested in helping us, or supporting us with resources.

ARE YOU IN OUR MEMBERS’ LOTTERY?

Are you a member of our fantastic Members’ Lottery?   Our Lottery, which is exclusively for members of HEYCU, has been run since 2001 by a group called HEYCU Friendly Folk.  Members can enrol for up to ten tickets in our monthly draw, with the price of each ticket – just £1 – being drawn from their Membership Account each month until they give notice to stop.

The Lottery is drawn on the second Wednesday of every month.  Over £500 in prizes are awarded, plus a triple draw at Christmas time.  Winners are notified by post but we also post a list on our website and social media and on screens or posters in branch.

At least 60% of the ticket sales are distributed in prizes with the remaining proceeds used to support credit union development, advertising and training activities.

If you haven’t joined our Lottery yet, what are you waiting for?   The more members who join, the bigger and better prizes we will be able to award.   To join, simply call the office for an application form or download one from our website and send it in.  You’ll be in the next available draw and, just think, it could be your ticket that wins the top prize!

AUGUSTA METRO FEDERAL CREDIT UNION

Finally, I’d like to mention our partner credit union in the USA – Augusta Metro Federal CU – whose 22,000 members have just voted to merge with PenFed CU of Tysons, Va, America’s second largest federal credit union.

In the States, the size of credit unions is simply breath-taking compared with the UK.  Augusta Metro members will be joining a CU with 1.5 million members and assets of more than 21 billion dollars!  They will enjoy access to loans, mortgages, credit cards and savings products with nation-leading rates and the financial security of a larger group. 

Established in 1935, PenFed CU has done well to build a great range of benefits for their mass membership.  But, as someone whose career has experienced several co-operative mergers, I was equally encouraged to hear of their care and concern for their people.  “We worked very closely with Augusta Metro’s Board to make sure we could deliver PenFed’s powerful credit union experience and add value to its members while taking perfect care of its hard-working staff,” said their Executive Vice President Shashi Vohra. “Providing opportunities for career advancement and improved benefits to employees is one of the hallmarks of our partnerships. The staff takes care of our members and we take care of them.”
Everyone at HEYCU sends best wishes to our friends at Augusta Metro for a successful merger, which is scheduled to take effect in June.

CHILD BENEFIT LOAN & SAVINGS PLAN

Have you read about our latest product? For families receiving Child Benefit, it offers a fantastic way to make the most of your money.  Having Child Benefit paid directly into a HEYCU Membership Account can give access to an affordable credit union loan of up to £500, a safe way to save up for Christmas, holidays, school uniforms and equipment, and the convenience of an Engage VISA debit card for shopping and online purchases.

Week commencing 21 Sep 2015

It’s all happening at the Credit Union just now, with our busy season about to start, plus it's "year end" next Wednesday!

Driffield 10th Anniversary

Last Wednesday I was proud to attend the celebrations at our Driffield Branch.  In my speech I named and paid tribute to those community-minded residents who founded the branch back in 2005 (at an event in the Blue Bell Inn) and, joined by others over the years, have run it with flair and dedication ever since.  Special achievements have included:

·        pioneering our primary School Banks, which developed into a model that has successfully spread out across  East Yorkshire';

·        playing a big part in the life of the community, raising funds for a whole host of good causes including National Children's Homes, Age Concern, Citizens Advice, Driffield in Bloom, Yorkshire Air Ambulance, Macmillian Nurses, Friends of Guiding, a local skate park, old folks' tea and an overseas flood disaster fund.  

The "birthday party" was well attended and it was good to welcome Paul Rounding of Driffield Town Council (who made the prize draw) and Marc Hall, Financial Inclusion Officer of East Riding of Yorkshire Council (who helped me cut the fabulous decorated cake).

Well done to our Driffield Branch volunteers, and here's to the next ten years!

Lloyds Banking Group

I was invited to join the managers from the region's Lloyds and Halifax banking branches at a couple of training sessions to brief them on our Credit Union.  Lloyds Banking Group recognises that the credit union sector provides a very important service to many people in the UK and are providing a £4 million fund to support its development.  In 2014 we were successful in our application for a Lloyds/Credit Union Foundation grant to assist with our North Lincolnshire merger. 

As part of this ongoing partnership, Lloyds and Halifax have agreed to promote credit union membership to their customers in a leaflet available in their branches which highlights our services, for example loans that are not part of their product range.  They are also interested in sharing business expertise with us by involving bank volunteers in credit unions.  As this initiative develops, it will help UK credit unions to improve and grow significantly over the next four years.

Eastern Raiders Football Club - your team!

The new football season is now well and truly under way. Many of you will be following the fortunes of your favourite high-flyers on "Match of the Day", while fans in these parts will be spurring on the Tigers to regain their place in the Premier League. However, in this piece it's to the East Riding County League that I want to direct your attention.

For HEYCU has just become the proud sponsors of Eastern Raiders FC, an up-and-coming team in Division Two.  The Raiders are based in Goole but play all over East Yorkshire in their quest for league and cup victory. They look splendid in their new purple and white kit featuring our Credit Union name and logo, and it's brought them luck so far, as the first match – away against Hull’s Apollo Rangers – resulted in a decisive 3-0 win, followed by an 8-4 victory over Patrington last Saturday, taking them to the top of the league!   You can follow the weekly fortunes of your sponsored team on our social media pages, so if you are a HEYCU member why not become a supporter and give them a shout?  Go Raiders!

Christmas is coming . . .

It hardly seems five minutes since we were on holiday, relaxing in the garden and enjoying the summer, but now our thoughts are turning to Christmas! 

Many members are already planning ahead and thinking about a Christmas Loan.  If you need to borrow say £400 to spread the cost of your festive spend over the year, you won't find a cheaper deal than your Credit Union.  With repayments of just £9.18 a week, our loans are many times cheaper than a doorstep loan, and more convenient, with payments direct from your bank account or your wages on the day you get your income.  What's more you can now apply on line.   Tell your friends and neighbours. . . why pay more?

Northern Lincolnshire Partnership role

There's just a few days left to apply to be our Northern Lincolnshire Partnership Officer.   All the details are on our website and if this interesting role appeals to you, please get your application form in without delay.

Members' Survey 2015 responses

I've now replied personally to those members who raised issues in our Members' Survey that I felt needed an individual response.  I promised to share a selection, as you may find them of general interest, so here goes:

Member's comment:

"I actually know nothing about the credit union at all. My Mum is a member and said it was a good way of saving some money for Christmas.  When I went into my local branch I was given an application form and a receipt for the deposit and that was that. I now pay in every week by standing order but I still don't know what the CU is all about. I didn't know it helped the local community, I just thought it was an easier way of saving money without all the red tape banks usually have. Perhaps it's my fault for not being more informed but I also don't feel the CU sold itself to me, and I'd never heard of it before my Mum mentioned it."

Our response:

"Thank you for your comments, from the viewpoint of a new member, which make some very good points.  We do want our members to fully understand what the CU is all about, especially the fact that they are more than just customers - they are member-owners with various rights and responsibilities. I am glad your Mum was able to introduce you to us, but you are right we should tell you what membership means when you join.  If we get it right, you will feel properly informed but not bombarded with too much information all at once, which some people don't like. 

"If you have access to the internet, you can learn a lot from our website and, as you have given us your email address, you will be sent twice yearly E-Newsletters, an invitation to our AGM, and a member survey.  As a result of your comments, we have decided to reintroduce a leaflet called Your Credit Union, which will in future be given to new members as they join."

Wearable banking devices

I've heard of people wearing their hearts on their sleeves but never their bank!  According to a publication that crossed my desk the other day, a major building society is pioneering the use of an Apple Watch or Android wrist device for customers to check their balances and move money between accounts.  The wearable app can even be voice activated, so no need to input a password, you simply speak a command and your balance appears on screen.  Since wearable banking arrived on the scene, the response has been sensational, my source explains. 

I was interested to learn that the society's employees play a big role in shaping these deveopments. Earlier this year staff took part in a mass trial of the contactless payment wristband.  Apparently, they were sorry to lose their band when the test ended!  What a great idea - if your staff are enthusiastic about a new product or service it will rub off on the customers.

It's fascinating how quickly technology is changing everyday life, in ways we'd never have imagined. Truly amazing!  Someone will be inventing a wheel next, I am sure.

Pennies 2 Pounds School wins a Centre of Excellence in Education award

Congratulations to Spring Cottage Primary School who were recently awarded excellence status as a Centre for Financial Education by Young Enterprise. The school successfully launched their school bank last year in response to requests from parents for a safe way to save up for expensive residential trips.

The club was initially offered to Year 5 pupils saving for their special end-of-year outing. Soon other family members wanted to join, alongside school staff who enjoyed the convenience of a savings bank at their workplace.

Two pupils volunteered to help run the bank and were very proud to be given their volunteer badges at the end of their training. This sparked great interest among the other pupils. The teachers capitalised on this enthusiasm by running classes in money management.

Soon the word spread among the local community. We were invited to display information about the Credit Union at the Summer Fair. This proved to be one of the busiest stalls as families and local residents were keen to find out more about a safe and convenient alternative to high street banking. Plans are now underway to recruit more volunteers and to launch a roll out programme of saving to the wider school community.

Brownie Badge for Junior Volunteer

Congratulations to Camille Jenkins, one of our youngest volunteers for successfully working towards her Number Fun badge.  Camille is a keen Brownie when she is not busy running the school bank. She was looking for a project to use her new skills during the school holiday.   A Number Fun Brownie Badge is awarded for:

·        Helping at an event where you have to collect money and give change;

·        Keeping a record of money you are given and spend during one month;

·        Knowing how to open a savings account and finding out about one savings account.

Pennies 2 Pounds offers experience in all these areas. Perhaps you know a young saver who may also enjoy working towards this award?

Junior Savers Autumn Competition

Watch our website for details of the latest competition for our Junior Savers.  We'll be inviting them to find out about the currencies used in other countries. Children over the age of seven will have an additional challenge to draw the flags of the countries named in the competition. Vexillology is the term given to the study of flags, a good word to note if you are taking part in a quiz! 

Could a Community Account help your club or group?

We're getting some great comments from users of our Community Account.  Some of our local clubs and groups use it to deposit the grants they receive from funding organisations such as the Council, Big Lottery and Comic Relief.  One says: "As Treasurer of our Residents Association I can rest easy knowing that our funds will be looked after at the Credit Union by people we can trust. Then, when we need to pay our bills, it's so easy, we just send in a signed request and the Credit Union sends a BACS payment without us having to bother with cheques."   Worth finding out more?