Transcript 2013.11 Diocesan Synod

CMCU
How Churches can help Credit
Unions and the proposed
Churches’ Mutual Credit
Union Ltd.
Revd Canon Antony MacRow-Wood ACA
Chair of Shadow board
Presentation to Salisbury Diocesan Synod 9th November 2013
The Church of England’s
Current National Strategy
CMCU
• C of E is developing a 3 pronged strategy for
credit unions.
• Firstly to link parish churches to local credit
unions.
• Secondly an Archbishop’s taskforce to work
credit unions and local banking sector to produce
credible, financially responsible, alternatives.
• Thirdly a plan to found the Church’s own credit
union, primarily for clergy and Church employees.
Part 1: How Can Churches
Help A Local Credit Union?
CMCU
• Be strategic – send someone reasonably senior
to ask what help would be most useful
• Listen to the reply
• Could be:
Governance
Capital injection
Savers
Borrowers
Host a Service point
Publicity
Part 1: How Can Churches
Help A Local Credit Union?
CMCU
Governance
• Credit unions are governed by volunteer
directors, boards can lack crucial skills.
• Our churches have some well qualified people
with financial, business and legal skills.
• Time commitment 1-2 evenings a month
Part 1: How Can Churches
Help A Local Credit Union?
CMCU
Capital Injection:
• Credit Unions are required to have 3% capital to
assets ratio by September 2014.
• Churches must do due diligence and have regard
for the advice from C of E lawyers re investments.
• Individuals or churches can make donations.
Part 1: How Can Churches
Help A Local Credit Union?
CMCU
Savers and Borrowers:
• If the Credit Union is well lent out it will welcome
people who join and just want to save.
• Especially if it has a reasonably high demand for
loans but is concerned about liquidity.
• If it is not well lent out, may not welcome more
savers as will erode their capital to assets ratio.
• They will welcome more borrowers. Christians
could see this like buying fairtrade goods.
Part 1: How Can Churches
Help A Local Credit Union?
CMCU
Host (and help run) a Service Point:
• Credit Unions are wary of the ‘Poor Man’s Bank’
label – don’t want to operate out of tatty premises.
• Ideal location – out of town estates with no
access to financial services.
• Find volunteers to help run it.
• Wonga’s average loan £178, someone saving £2
(price of a lottery ticket) a week for two years
would not need a payday loan.
Part 1: How Can Churches
Help A Local Credit Union?
CMCU
Publicity:
• Help create news stories like the recent visits of
Bishops to credit unions.
• Have posters up and leaflets available in your
church.
• Word of mouth – be informed about services,
products and access channels so you can tell
people about their local credit union.
Part 2: Membership will be
open to…
CMCU
1. Baptised members of Church of Scotland &
Anglican Churches in GB (or those formally
received into membership) provided that:
• They are ordained or training for ordination or
• They are a Licensed Lay Minister, or
• They are employed by a CofS or Anglican Church
or Charity, or
• They are a trustee of a CofS or Anglican Church
or Charity
Part 2: Membership will be
open to…
CMCU
2. Persons living in the same household as the
above.
3. Church of Scotland or Anglican Churches or
Charities based in Great Britain.
4. Employees of Ecclesiastical Insurance Co.
• And eventually…. members of an Anglican/CofS
Electoral Roll or equivalent, and other
denominations.
Part 3: What will the CMCU
do for its members?
CMCU
• A practical, ethical and accountable provider for
tax efficient saving and affordable credit.
• A competitive alternative source of consumer
loans.
• The capacity to begin saving, improve financial
capability and plan for retirement.
• In due course provide mortgages for retirement
housing.
Part 4: Strategy for CMCU
CMCU
• Car Loan Scheme and payroll deduction can
build sustainable business within 3 years
• Concentrate membership recruitment on those on
the central payroll but have direct debit facility.
• Launch with more than 5% capital so can offer
interest on savings.
• By including trustees of church charities will have
members with the expertise to run it.
• Internet banking.
• Work in partnership with EIG to have access to
office premises at cost and marketing expertise.
Timeline to Launch
CMCU
• Just submitted application to the regulators.
• Continuing to raise start up capital.
• May 2014 launch liturgy as part of General
Assembly of C of S.
• ‘Soft launch’ at General Synod July 2014,
begin trading 1st October 2014.
• In 10 years time, could be main source of
mission funding for parishes.