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.

CMCUHow Churches can help Credit

Unions and the proposed Churches’ Mutual Credit

Union Ltd.

Revd Canon Antony MacRow-Wood ACAChair of Shadow board

Presentation to Salisbury Diocesan Synod 9th November 2013

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.

The Church of England’s Current National Strategy

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 1: How Can Churches Help A Local Credit Union?

CMCU1. 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 2: Membership will be open to…

CMCUPart 3: What will the CMCU do for its members?

• 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.

CMCUPart 4: Strategy for 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.

CMCUTimeline to Launch

• 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.