As our CEO celebrates 5 years in the role we took the opportunity to find out more about some of the significant changes have occured in the credit union movement both locally and globally. Here’s what she said:
What are some of the changes you have seen at ESCU as CEO both locally and globally in the credit union movement over the last 5 years?
5 years ago we were in a cramped cold office where visitors had no privacy. In late 2016, we moved into a bespoke advice hub at Hove Town Hall. Working with Brighton & Hove City Council and our partners, Citizens Advice and Money Advice Plus, we co-designed an office space with private interview rooms and a spacious staffed reception area, as well as referral mechanisms so that visitors got the service they needed in one place.
All our processes were paper-based 5 years ago and now people can join, save, withdraw and borrow money online with more automation such as web chat and use of a behavioural app planned, we envisage that technology will play a big part in our future.
There have been some massive changes since the beginning of COVID. Hospitality and tourism shut down. We don’t know how many of those organisations will close forever or be able to afford to be able to open with reduced customers. That has impacted our members quite considerably as we serve a lot of coastal communities. Tourism has been hit. We may see big business over the summer in these towns as people will be turning in holidaying in the UK. It could bounce back.
Our membership has significantly grown over the last 5 years (75%), so too has our savings (70%). Our loan book has grown by 56% (pre-COVID level) and we have even seen a small increase since the lockdown of 35%.
We have lent over £7million in the last 5 years and we estimate that we have saved local people over £5million in interest, against what they might have paid had they gone to a high interest lender, which is great news for all of our members.
During the last 5 years, I have been a commissioner on the Fairness Commission as I am determined to improve how we delivered our social mission and make a real impact on peoples’ lives.
I am proud to say that our partnership work with Brighton & Hove City Council on the Rent Deposit Scheme has meant that over 800 people have now been housed and we have become pioneers in helping over 200 homeless people access bank accounts due to the rollout of Universal credit which left ‘unbanked’ people unable to receive benefits.
Even during lockdown, when it was difficult to deliver services, we were able to access funding so that we could deliver zero interest rates to people that needed us most.
Over the last 5 years, I have been lucky enough to recruit and work with a professional and committed management team that have delivered these changes and this growth. We have strong relationships with our key local authorities and they have supported us with subordinated loans and in this COVID year, with grants to help us to continue to serve our community.
Credit unions have always been there for their members and members seem to appreciate them more now because we have been concerned about our member wellbeing all the way through, where perhaps other financial service providers haven’t had the same mission focus as us.
People are more interested in buying local and ethical now because their world has shrunk and as an ethical and local supplier and this is a good position to be in. We are developing some of the services that people are now looking for including our mobile app with the Savings Goals account and offering the Quo Money behavioural app as a member benefit.
