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Tess Pendle Head of My Home Finance. Why? Response to members concerns Needs of vulnerable tenants. The Credit Gap. Credit Unions. Banks. Doorstep/Illegal. Member concerns. Debt spirals Rent arrears Health/social issues. Federation Response. Solvent & sustainable social business
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Tess Pendle Head of My Home Finance
Why? • Response to members concerns • Needs of vulnerable tenants
The Credit Gap Credit Unions Banks 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
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 • 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%
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 tess.pendle@housing.org.uk