To receive an update from the Cheshire Neighbours Credit Union (CNCU)
Minutes:
The Committee received an update on the recent activity of Cheshire Neighbours Credit Union (CNCU). John Weir, Chief Executive Officer, at CNCU attended the meeting with support from Sharon Angus-Crawshaw, Partnerships Manager. John informed the Committee about the progress being made by CNCU and some of the issues it was facing. During the discussion the following points were made:
· The Council had provided a £60,000 grant to CNCU which helped cover its running costs until September 2015 avoiding the closure of the credit union.
· Members were aware that CNCU would require some further financial support in the next year however wanted to ensure that the Council’s investment was worth while. The Committee requested that CNCU share its business case to explain how it planned to become financially sustainable and independent.
· CNCU had been continuing to try and rebuild its reputation and develop new relationship with partners and customers following poor performance in the past.
· Income from loans was increasing per month and arrears on the loan book were low at 1.6-1.7% (some other credit unions in the country typically had 20-30% arrears).
· Membership of the credit union was growing steadily. Gaining access to the Council’s libraries had helped increase the profile of CNCU, particularly in Macclesfield were it had previously had a limited profile with residents.
· Crewe Town Council had taken £15,000 of shares in CNCU.
· The use of Jam Jar Accounts was growing slowly. The credit union was trying to build relationships with housing associations to encourage their tenants to use jam jar accounts to help manage their money and pay rent. This was considered particularly useful with the introduction of universal credit.
· The payroll deduction scheme was also growing slowly. The credit union was taking £58,000 per month from employees at Cheshire East and Cheshire West and Chester Councils; the target was to reach £100,000 per month to help secure the future of the credit union. CNCU was also developing relationships with local businesses to join the pay roll deduction scheme.
· The credit union had recruited two new board members with a wealth of skills and experience who would help achieve further growth and stability.
· There had been some interest from care leavers in having a credit union account however limited progress had been made with officers to complete the process. The Committee was requested to investigate how more progress could be made.
· The credit union wanted to make more progress recruit young people to become members. Members heard about a scheme called Future Savers, set up by Glasgow City Council, which provided a credit union membership, with a £10 deposit to all school pupils in S1 (year 8 equivalent). It was suggested that the Council should consider implementing a similar scheme for all year 7 pupils in the Borough each year. It was estimated that this would cost the Council £10,000 per year however would encourage young pupil to learn about finance and savings.
RESOLVED
(a) That the update be noted
(b) That a further update be received in July 2015 including a briefing on CNCU’s business case