Tess Pendle Head of My Home Finance Why? Response to members concerns Needs of vulnerable tenants.
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Transcript Tess Pendle Head of My Home Finance Why? Response to members concerns Needs of vulnerable tenants.
Tess Pendle
Head of My Home Finance
Why?
Response to members concerns
Needs of vulnerable tenants
The Credit Gap
Banks
Credit
Unions
Doorstep/Illegal
Member concerns
Debt spirals
Rent arrears
Health/social issues
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
Partners
HAs
DWP GF
Wates Giving
RBS
ELM
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
Services
Credit
Basic bank accounts
Savings accounts
Money advice
The cost of credit
today
Banks +
£6 to
Good credit
history
CDFIs/MHF
Home
Credit
(IML)
Loan Shark
£13 per
£100
£30 per
£100
£75 - £100
per £100
£100 + per
£100
Share based &
can’t take high risk
percentage
All high risk but
no further
subsidy
required
Credit
Union
High risk, face
to face,
flexible,
personal
Female, 30-40
yo, welfare
benefit, social
housing
Customer Relations
Building Credit Scoring
Flexibility in Payments
Personal Contact
Early repayment no penalties
Arrears collection
Process
Initial contact
Appointment
Interview
Decision
Payment
(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]