Record month loan for Wolverhampton credit union
During the third lockdown, the credit union started testing an online loan application process that is starting to bear fruit.
Chairman of the Board, Kevin Fearon, told the credit union’s annual general meeting on Monday, “As members know, increasing our loan portfolio is critical to survival and prosperity. long term of this organization, as well as a marker of our effectiveness in building financial resilience. in our VM communities.
“I am happy to report that in May we had over £ 239,000 in loans issued, the best month to date outside of our Christmas loan period. And the first indication is that we will continue this trend. . “
Mr Fearon said the pandemic and successive lockdowns resulted in one of the most difficult years in the history of the nonprofit financial cooperative.
He told the members that the fiscal year ended in September 2020 had been “difficult for our members, difficult for the employees as well as for the management team and directors”.
Mr Fearon told an audience of members via Zoom that the closure of the Worcester Street credit union branch and its presence at the Civic Center and community venues in Low Hill and The Scotlands due to Covid-19 had resulted in a massive online shift with more members signing up for online accounts to perform routine transactions and apply for loans.
He added that the credit union had “tested the patience” of members who preferred face-to-face transactions.
“We are grateful to the vast majority of our members who have overcome their discomfort with online banking and hopefully have benefited from it,” he said.
“We realize that we are working in a digitally divided city, so our commitment to helping people get around online has, I think, made us feel more connected.
“We recognize that there has been a drop in service standards for those who do not bank online, especially with regard to speed of delivery and ease of access to services.
Looking to the future, Mr Fearon said the credit union was unlikely to be the best place for people looking for a current bank account service comparable to Main Street banks.
“We are convinced that the very small minority of members who use their credit union as a single account would be best served through a basic bank account at one of the main street banks, keeping their credit union account to save money. and access affordable loans. ,” he added.
During the event, members voted for an annual dividend (return on savings) of 0.25 percent.
Membership for the year at the end of September was 9,675 with an average saving of £ 394.
The average loan made during the year was £ 717 and the total loan value was £ 2,398,017.
The total value of savings was £ 3,808,263 and total assets £ 4,550,482.