Gentoo

2. Gentoo Gentoo is about improving the Art of Living beyond our imagination by investing in people, planet and property. The Group’s whole ethos is about believing nothing is impossible, aiming to inspire and empower people by finding ways to challenge conventions, even if this means sometimes shaking things up a bit and doing things differently. The Group aims to make society a better place to live and to make a real difference to allow people to focus on what is important in their life, and live their lives to the maximum of their own potential.

3. About Us • People, property and planet business • 29,000 social tenancies • 7 area offices, 2 buildings at head office • 1,800 staff • £125m turn over • £1bn asset base

4. Our Customers • 29,000 properties equating to approximately 70,000 adults • 25,000 on waiting list, 10,000 of which are active • 250 actively engaged/ involved customers • 9,326 Full HB • 10,049 Partial HB • 9,854 No HB

5. Financial Wellbeing We define ‘financial wellbeing’ as a combination of being both financially included and financially capable. Financial Inclusion - can be described as a state in which all people have access to appropriate, desired financial products, services and advice in order to manage their money effectively. Financial Capability - is having the ability, the will and the confidence to manage money more effectively, and make informed financial decisions. Financially capable consumers plan ahead, find and use information, know when to seek advice and can understand and act on this advice, leading to greater participation in the financial services market. Being ‘financially well’ means a person’s financial situation does not negatively affect their Art of Living.

6. Financial Wellbeing Our Aim ‘To Improve People’s Financial Wellbeing’ Our Objectives

7. Local Picture Income Research carried out by the JRF states that the minimum income standard for a single working age adult is £187 a week (excluding rent, council tax and childcare) applying this to the income data from Experian 7,528 (26.4%) of Gentoo’s current tenants and 3,653 of our registered tenants are living on less than the minimum income standard. The Experian data is an estimation of household income based on a stratified random sample. The information is weighed and tested to ensure it fully represents the UK population. “ To improve people’s Financial Wellbeing”

8. Local Picture Financial Stress Financial Stress - based on current financial situation of the household. This is estimated by Experian, based on their credit and other financial information on the household’s current income and expenditure The map opposite shows the average financial stress by patch area. The financial stress score is graded on a scoring of 0-4. 15,000 (53%) households reported to have no financial stress and only 8% had a ranking of 4 (highest). “ To improve people’s Financial Wellbeing”

9. Local Picture Financial Vulnerability Financial Vulnerability: this score is based on a likelihood of the household being vulnerable to emerging household financial issues. This is based on a model created by Experian which forecasts a households financial status based on a number of variables. The variables taken into consideration will be their current financial situation and household make up, plus whether they are likely to affect by welfare reform changes, likely future fuel costs, future employment prospects etc. This table shows the financial vulnerability scores and the percentage of households within each ranking. -1 is the lowest and 9 is the highest. The table shows that 41% of tenants are classified as a 9 for financial vulnerability. “ To improve people’s Financial Wellbeing”

10. “ To improve people’s Financial Wellbeing”

11. “ To improve people’s Financial Wellbeing”

12. “ To improve people’s Financial Wellbeing”

13. The Rental Exchange • Millions of social housing tenants in the UK face financial, digital and social exclusion • Excluded from affordable credit • More likely to be declined • Pay a higher price for credit and other basic goods and services • The Rental Exchange will help tenants with the challenges they face in every day life • Attaining affordable credit when they need it • Better tariffs for utilities, insurance and mobile phone contracts • Proving their identity

14. The Rental Exchange • To enable an assessment of the benefits of incorporating rental data with credit bureau Experian reviewedGentoo’sdata using all of the credit accounts (known as CAIS) that are recorded at Experian - CAIS holds information on over 440 million credit accounts. • Experian operates CAIS on behalf of its members - the members who manage the scheme also make the rules governing how CAIS operates (the governing body is known as The Steering Committee on Reciprocity (SCOR). • CAIS operates under strict rules of ‘reciprocity’, which means members are entitled to access information that is directly equivalent to the level of information they supply. • Experian gained approval from SCOR on 5th December 2013 to give CAIS access to social housing landlords that contribute date into Rental Exchange.  • The chart opposite shows the relative size of the CAIS portfolio.

15. The Rental Exchange The preliminary findings are showing positive results for gentoo tenants, both in terms of creating/ improving their credit file, and creating a digital ID footprint

16. The Rental Exchange Customer Segmentation Group D: On the Breadline XX tenants • Key features: • Finances are extremely tight, so they seldom have anything available to set aside for savings. • They are unsophisticated when it comes to banking and financial products and many only have the most basic accounts. • People On the Breadline enjoy spending the little money they do have. Shopping is a hobby and they enjoy buying something new. • They are happy to take on credit to maintain their consumer habit, which includes new clothes, mobiles and home entertainment. • Credit is found through mail order catalogues, overdrafts or credit cards. They take out loans for larger purchases such as holidays. However, they can find it difficult to obtain credit and are the most likely to default. • Despite their financial circumstances, most remain optimistic. Rather than worry about their lack of cash, many will have a flutter on the horses, play the lottery or pools, or go to bingo hoping for a windfall.

17. The Rental Exchange Customer Segmentation Group D: On the BreadlineXX tenants Group M: Elderly Deprivation XX tenants • Key features: • Elderly Deprivation pensioners are almost completely dependent on the state for their income - it is important that they claim all the benefits to which they are entitled. • Traditionally, these people collect their pension in cash from the post office. They may have a savings account at a local bank where they put away a few pounds if they can. • They are unlikely to take out a loan as the repayments would be too difficult to cover and because they don’t make big purchases - any debt they do take on will be for small amounts. • They may have one credit card with an institution they have been loyal to for years. • They would often rather pay an agent at the door than use more modern methods. New technology is beyond them - even the phone can feel intimidating. • Elderly Deprivation have to manage their finances carefully to pay for the basic necessities. They are cautious with their money, though it’s hard to remember where every penny goes. They try to keep their bills down.

18. The Rental Exchange Customer Segmentation Group D: On the BreadlineXX tenants Group K: Ageing Workers XX tenants • Key features: • Elderly Deprivation pensioners are almost completely dependent on the state for their income - it is important that they claim all the benefits to which they are entitled. • Traditionally, these people collect their pension in cash from the post office. They may have a savings account at a local bank where they put away a few pounds if they can. • They are unlikely to take out a loan as the repayments would be too difficult to cover and because they don’t make big purchases - any debt they do take on will be for small amounts. • They may have one credit card with an institution they have been loyal to for years. • They would often rather pay an agent at the door than use more modern methods. New technology is beyond them - even the phone can feel intimidating. • Elderly Deprivation have to manage their finances carefully to pay for the basic necessities. They are cautious with their money, though it’s hard to remember where every penny goes. They try to keep their bills down.

19. The Rental Exchange Customer Segmentation Group D: On the BreadlineXX tenants Group F: Credit Hungry Families XX tenants • Key features: • Credit-hungry Families have spent beyond their means and are dependent on credit to fund their lifestyles. Their incomes are below average and a good proportion of the money that comes in each month is taken up by existing debt. • They are typically couples, either married or cohabiting, in their twenties or thirties with young or school age children. • They use credit extensively and in many guises. Credit cards are used for high street shopping, mail order catalogue credit to buy clothes for the children and hire purchase credit for the bigger items they can’t quite afford, such as a new three-piece suite or a replacement second-hand car. They are rarely able pay off their credit card bill in full. • The cost of everyday living is always just beyond what they have coming in. • While they are not the most likely to have bad debt, there is a strong possibility that they will get into financial difficulties. They are also the most likely to take out a loan for debt consolidation.

20. The Rental Exchange Next Steps Group D: On the BreadlineXX tenants Supply initial data for analysis - Completed Review analysis describing the benefits of the scheme - Completed Agreement to progress. Notification to tenants. Establish a regular feed of actual payment data about tenants’ rent payment performance. The data will be accessed when the tenant applies for goods or services where a credit or identity check is made through an organisation using Experian’s database.

21. The Rental Exchange Tenancy Sustainability The solution will enable targeted support in three key areas: Identifying tenants that do not have an account that can receive automated payments - so that you can work with them to help provide access to a banking facility e.g. jam jar, Post Office card or current account. Identifying tenants that appear to be in financial stress - so that you can offer supportive budgeting advice and financial education packages to help those individuals, get back in control or stay on top of their finances. Identifying tenants that may not be in immediate financial difficulty but are in financial situations that indicate that they are at risk of falling behind on repayments in future.

22. Questions victoria.mackay-parkin@gentoogroup.com 0191 525 5359 / 07720838741