Tess Pendle Head of My Home Finance. Why? Response to members concerns Needs of vulnerable...
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Transcript of Tess Pendle Head of My Home Finance. Why? Response to members concerns Needs of vulnerable...
Tess Pendle
Head of My Home Finance
Why?
Response to members concerns
Needs of vulnerable tenants
The Credit Gap
Doorstep/IllegalCreditUnionsBanks
Debt spirals
Rent arrears
Health/social issues
Member concerns
Federation Response
Solvent & sustainable social business
Small sum (“micro”) lending
Long-term financial plan
Not for Profit
“a social business...You are committed to solving a social problem with no intention of making personal financial gains. You cover all costs through your operations so that your business is self-sustaining”
Muhammad Yunus, May 2010 Grameen Bank founder & Nobel Peace Prize Winner,
2006
Governance
Independent CLG
Federation Founder Member
Board and Sounding Board
Launch
Launch
Pilot
Wolverhampton Tamworth
Walsall Erdington
Dudley Birmingham City
Worcester Northfield
Hereford Coventry
38 Jobs
CreditBasic bank accountsSavings accountsMoney advice
Services
The cost of credit today
Customer Relations
Building Credit ScoringFlexibility in PaymentsPersonal Contact Early repayment no penaltiesArrears collection
Process
Initial contactAppointment
InterviewDecisionPayment
(Money advice)
Roll Out
Roll out
• North East/West
• Alternative delivery models
• Closer HA and stakeholder involvement
So far…
Loans: 4,007
Average loan £366
Aggregate lending £1.2 million
Savings Accounts
46%
Demographics gender
Demographics - age
Demographics - ethnicity
Analysis/Impact
Typical MHF customer:
Borrows around £366
Currently repays £417
Better off by £249/year (against HC)
Analysis/Impact
Based on average loan £366
if borrowing taken out at £82/£100:
Total annual savings for clients roughly
£996,000
Thank you [email protected]
