Focus Magazine - Summer 2023

Summer 2023

CONQUERING THE INCREASED COST OF LIVING

WHAT’S INSIDE?

FIGHTING HARDSHIP & EXCLUSION

Rise in members choosing to bank with their local Credit Union: p2

FASTER PAYMENTS

Why they are important for your Credit Union and it’s members: p4

UK CREDIT UNION BORROWING

EXCEEDS £2 BILLION IN 2022

New Bank of England figures: p9

Fighting hardship & exclusion

ENGAGE IN FOCUS Fighting hardship & exclusion Fighting hardship & exclusion

We’ve all seen the TV advert…

Ambitious young girl on bike pushes herself to the limits and takes a bad fall. Up comes a black horse (symbolising a well-known high street bank) to comfort her in her time of need.

This horse’s care and compassion helps the girl to her feet and inspires her to go on and achieve great things in life.

Utter nonsense! Instead let’s look at a more realistic, everyday scenario currently facing millions of people across the country.

Our hero is an ambitious single mum who suddenly loses her job and can no longer pay her bills. Looking for help she goes to her bank (online of course because the local branch is now closed) and her request for a loan is rejected as three years earlier she accidently missed a payment on her credit card bill and is deemed too much of a risk.

Now, despite managing to get herself a new job, she is in serious arrears with her energy supplier and on a prepayment meter which means she can only afford to heat the house for a couple of hours a day.

No longer able to use her current account as the interest on her longstanding overdraft swallows up her monthly

wages, cash is the only way she can transact. With Christmas coming, that high interest loan from the doorstep lender who called last week seems like her only option.

Where is that black horse galloping in to save the day when needed?

The number of adults in the UK who missed payments on bills or loans went up by 1.4 million: from 4.2 million in May 2022 to 5.6 million in January 2023.

The number of people who felt that making these kinds of payments was a heavy burden jumped from 7.8 million to 10.9 million.

A staggering 28.4m people describe feeling more anxious and stressed in January compared to 6 months earlier, and stories of people resorting to credit to cover bills, shopping and insurance are not unusual.

Sadly, a worldwide financial crisis and the suffering that follows as a result is a regular occurrence.

This is why back in 2011, following the worst financial crash since the great depression, the people behind Engage committed to helping credit unions and community banks compete against big banks and emerging fintech powerhouses.

Having seen the movement’s

unwavering commitment to helping members and their communities, Engage planned to provide a suite of ethical digital accounts that complemented existing Credit Union savings and loans products in a way that would provide genuine help and added value to those who found themselves financially excluded.

What Engage and a national network of Credit Union partners have achieved since then is to ensure that many thousands across the UK can benefit from instant access to cash, the ability to pay bills conveniently and without financial penalty, help to stretch weekly budgets through cashback rewards on everyday shopping, and by helping members to keep their finances on track with the Engage ‘Envelopes’ budgeting tool.

Engage remains committed to helping their credit union partners deliver financial inclusion and financial opportunity for every member. Whilst its impossible for us to prevent a cost-of-living crisis, this combination of ethical financial services will always contribute to relieving some of the pain.

Geoff Leech Managing Director, Engage

Cutting the cost-of-living for Credit Union members

Cashback rewards can be a helpful tool in managing the cost-of-living crisis.

With the cost of living increasing, every penny counts, and cashback rewards can help individuals save money on their everyday purchases. For instance, consumers can earn cashback rewards on groceries, clothes, and other essential purchases, which can help them save money and reduce their overall expenses.

Appy days!

Engage introduce new and improved app to help members manage their money easily.

With the app, Credit Union members can see real time transactions, make payments, check their balance and so much more.

Free push notifications

One key area members will be sure to use is the free push notifications. Account holders can see when money goes in, out and when their balance reaches a certain amount. This means members need not pay for an ATM balance check, as their is a free alternative to a paid for service.

Credit Unions working with Engage already know about the benefits of cashback rewards for their members, as cardholders can claim up to 15% with participating retailers.

According to nimblefins.co.uk, the average 4 person household (2 adults, 2 children) would spend £129 on the weekly grocery shop. If a customer used their Engage card for these purchases at a participating store offering 3% cashback, they would save over £200 per year.

Scan the QR code to see current Engage rewards.

User help videos

Along with the app, Engage have released handy help

found on engageaccount.com/support.

The videos show how to easily check your balance for free, make a bank transfer or activate a card or report it lost/stolen.

Scan the QR code to view the How To videos, where your Credit Union can use the share link to embed on your website or direct members to when they need support.

Full app information

The Engage app allows users to make the most of their accounts and their money, full information regarding the app can be found on the dedicated webpage, engageaccount.com/mobile-app

ENGAGE IN FOCUS

In 2023 we’ve come to expect our financial transactions to happen quickly and without incident.

Whether we are buying a coffee or receiving our salaries we don’t really give the “how” a second thought. This is one reason why Faster Payments have become an increasingly important part of the payments landscape in recent years, and particularly for organisations like credit unions and community banks who regularly distribute payments at scale.

The Faster Payments service allows all organisations, of whatever size, to send money from their bank to their payees, in near real time. In today’s economy this is an important and expected part of keeping customers, employees or members satisfied.

“Our Credit Union uses Bacs, so what exactly are Faster Payments?”

Faster Payments are money transfers which clear receiving accounts in seconds rather than days. It is the standard way for consumers to make individual bank-to-bank payments. Businesses however, who need to make multiple payments every day, have historically relied on the Bacs system to distribute money. Bacs payments often require submitting software, bank sponsorship and even a card reader to commence

4

payment options. By offering

the processing of payments. Not only that, but the Bacs payment cycle is also three days from initiation to receipt. However, it is still the most used method of large-scale payment runs because they have been the standard for decades.

“So why could Bulk Faster Payments be important for my organisation?”

Improved Customer/Member Satisfaction

By offering Bulk Faster Payments, community finance providers, credit unions and any organisation that needs to make multiple transfers, can improve customer satisfaction by delivering payments so much quicker. By utilising Bulk FPS (Faster Payments Service) instead of traditional Bacs payments, you will be removing the three-day wait for funds. This could help your organisation retain and attract new customers or members.

Competitive Advantage

Organisations that offer Faster Payments can gain a competitive advantage over those that don't. In today's digital world, consumers expect fast and convenient

Faster Payments, your organisation can meet these expectations and differentiate yourself from competitors.

Access to New Markets

Finally, embedding Bulk Faster Payments into your daily operations could provide Credit Unions with new revenue opportunities. Providing “paymentsas-a-service" for your payroll partners or for your wider community stakeholders (large employers, Housing Associations, Local Authorities) you could broaden your organisation’s offering as a key community finance provider.

Speak to Us

Alongside the range of Card Accounts, Engage are celebrating the launch of Bulk Faster Payments as a service now available to our Credit Union and Community Bank partners.

To learn more, please contact Engage Partner Development Manager, Stephen Hope.

07513 824944

On 31 July the FCA's new Consumer Duty regulation comes into effect, and Engage has been helping Credit Unions understand what, if any, changes they need to make to be compliant.

Contact Jacob Mistry at jacob.mistry@engageaccoun t.com to share Consumer Duty-friendly Engage website and marketing recommendations, and to get a recording of the

well-attended Consumer Duty & Credit Union webinar that Engage hosted in March.

Being on the side of the consumer and "acting to deliver good outcomes for retail customers” is at the heart of many Credit Unions. So we're finding that it's largely small tweaks rather than big edits that most Credit Unions are needing to make.

For full information regarding Consumer Duty, head to www.fca.org.uk/firms/consum er-duty.

ENGAGE IN FOCUS

You can also scan the QR code to view the Engage hosted webinar on how the regulation effects Engage and the relationship with partner Credit Unions.

Engage and Chesterfield & North-East Derbyshire Credit Union hit the road

Stephen Hope, Business and Partner Development Manager, Engage, joined Alan Ward from Chesterfield and North-East Derbyshire Credit Union for a day on the road as they supported 2 great community projects.

The Great Chesterfield Get2gether

Held in Dunston in the morning on 4 April 2023, there were over 50 stalls for people to browse in the local Primary School. The event was well attended with lots of information and support available for people struggling with debts and budgeting, looking after mental health and well-being, volunteering, getting back into work, getting more active and finding out about services available in the local area.

The afternoon took Hope to another, but altogether different community success story, this time it was at the Farmers View project on the Hurst Farm Estate on the outskirts of Matlock.

Hurst Farm Regeneration Project

The project created was by Derbyshire Dales District Council and operated with partners including Derbyshire Dales Council for Voluntary Service (CVS), Platform Housing Group and the Friends of Hurst Farm. The old social club building has been gutted, with the installation of new windows, a new flat roof, business start-up office space and a resurfaced car park, creating a modern multi-functional community hub complete with pub, café and community pantry.

Ward sets up regular “surgeries” to discuss how residents of the estate can join the Credit Union and enjoy the benefits of savings and low cost loans. Engage has a crucial part to play for those residents who have suffered financial exclusion and who may be unable to open a bank account with one of the high-street banks. For those who may be recovering from a period of financial distress they can use the Engage account with all it’s banking functionality to reset their financial footprint

as there are no credit checks for people applying via the Credit Union.

At the end of a day of community outreach Hope commented “it was great to see so many community stakeholders in one day all with a common cause: to support the people of Chesterfield and North East Derbyshire during this challenging time. The Credit Union in particular, is going the extra mile to reach people desperately in need of financial support and to keep out of the clutches of illegal money lenders and loan sharks. Much of this work is done in Alan’s own time, at evenings and weekends and it really does set an example to us all. We are looking forward to joining many of our (Engage’s) Credit Union partners in similar ways as they continue their extraordinary community work.”

With debt piling up, Chris Dawkins needed to improve his financial position, so he turned to his local Credit Union, Bridgend Lifesavers.

Since joining, Dawkins has received the necessary support to get him into a more stable financial position and he reflects on the valued service provided by Bridgend Lifesavers.

Chris Dawkins, a 43-year-old from Bridgend, South Wales, faced mounting debts in the years that followed the breakdown of his marriage.

The father-of-two, who works in customer service, turned to a doorstep lender when he needed some extra cash. Despite doorstep lenders being regulated by the Financial Conduct Authority (FCA) and required to follow certain rules, Dawkins was not happy with

CREDIT UNIONS IN FOCUS

how he was sold his loan. “The agents were working on commission, and they were just concerned about getting you that loan,” he explains. “They really didn’t care about whether or not you could afford it, so it felt like they weren’t really being sold fairly.”

With debt piling up, Dawkins needed to improve his financial position, so he turned to his local Credit Union, Bridgend Lifesavers.

Soon after joining the Credit Union, Dawkins had some problems with his car, which he needed to transport his children around and to travel to his company’s head office.

Dawkins applied to borrow money from the Credit Union and received two loans, each of £250, which helped pay for the car repairs.

“I’m really glad I don’t have to use the doorstep lender

anymore,” says Dawkins, who is now repaying £44 a month towards his Credit Union loan. He is also putting £10 a month into a savings account, which is a common feature of Credit Union loans.

By repaying the loan, Dawkins is also building up his credit history and improving his credit score. This is helping him to get into a more stable financial position and offers the potential to access more affordable forms of credit if he needs to borrow in the future.

ABCUL Nerd Wallet

ENGAGE IN FOCUS

Grow your Credit Union with these simple social media tips

Social media platforms like Facebook, Twitter, and LinkedIn are powerful tools for reaching new audiences.

These platforms allow credit unions to connect with potential members, showcase their products and services, and build brand awareness. Social media is also a cost-effective way to reach a large audience. By creating engaging content, credit unions can attract new members and build long-term relationships.

Tips for Using Social Media

1. Define Your Target Audience

Before you start using social media to attract new members, you need to define your target audience. Who are you trying to reach? Identify the demographics of your ideal member, including age, income, and location. Use this information to create content that resonates with your target audience.

2. Create Engaging Content

Social media is all about engagement. To attract new members, your content needs to be interesting and

informative. Share news about your credit union, industry trends, and personal finance tips. Use visual content like images and videos to make your posts more engaging.

3. Be Consistent

To build a following on social media, you need to be consistent with your content. Post regularly and on a schedule that works for your audience.

4.

Engage with Your Audience

Social media is a two-way street. To build a relationship with your followers, you need to engage with them. Respond to comments and messages promptly. Ask questions and encourage feedback.

5. Advertise

Social media advertising can be a powerful tool for reaching new audiences. Platforms like Facebook and LinkedIn allow you to target specific demographics with your ads. Invest in social media advertising to increase your reach and attract members. At Engage, we understand not all Credit Unions have the capcity to fulfill effective marketing strategies

consistently. That’s why we work with our partner Credit Unions to offer bespoke marketing support.

As well as our always available ‘marketing pack’ available at engagecommunitybanking.co m/marketing, we also work with Credit Unions to understand what events they are attending, to see where we can provide extra support. We also can tailor our pre-made social media posts, leaflets and flyers to suit you, as well as creating entirely new marketing support where needed.

Engage also work with Credit Unions to advertise online, providing paid-for Facebook campaigns to drive membership!

Kent Savers say “we are really enjoying your marketing support, and have used the content to add to our webpage!”

If you would like to discuss more on how Engage can support your Credit Union with marketing, get in touch with Jacob at jacob.mistry@engageaccount. com

Credit Union sector in the UK hits membership milestone

CREDIT UNIONS IN FOCUS

On 28 April 2023, the Bank of England published the latest quarterly statistics for the credit union sector for quarter four of 2022.

On 28 April 2023, the Bank of England published the latest quarterly statistics for the credit union sector for quarter four of 2022.

CEO, Robert Kelly.

CEO, Robert Kelly.

According to the data, there are more credit union members (including junior depositors) in Great Britain than has ever been recorded. The total number is at 1.44m, with nearly 950,000 in England, over 415,000 in Scotland and 80,000 in Wales.

According to the data, there are more credit union members (including junior depositors) in Great Britain than has ever been recorded. The total number is at 1.44m, with nearly 950,000 in England, over 415,000 in Scotland and 80,000 in Wales.

Further analysis shows that total borrowing from Credit Unions saw huge growth through 2022 as people tackle the cost-of-living crisis. The total value of credit union loans in GB increased by 5.8% from £1.28 billion in Q3 to £1.35 billion in Q4.

Further analysis shows that total borrowing from Credit Unions saw huge growth through 2022 as people tackle the cost-of-living crisis. The total value of credit union loans in GB increased by 5.8% from £1.28 billion in Q3 to £1.35 billion in Q4.

“This is an incredible milestone for the sector to reach and shows that as membership numbers continue to increase, the sector is supporting even more people with the exemplary care and services always offered,” says ABCUL

“This is an incredible milestone for the sector to reach and shows that as membership numbers continue to increase, the sector is supporting even more people with the exemplary care and services always offered,” says ABCUL

Kelly added: “This indicates that people need our sector as an alternative to high-cost credit more than ever and we at ABCUL will continue to champion our great sector.”

Kelly added: “This indicates that people need our sector as an alternative to high-cost credit more than ever and we at ABCUL will continue to champion our great sector.”

ABCUL & Bank of England

ABCUL & Bank of England

To view the full Q4 Credit Union stats in the UK, scan the QR code

To view the full Q4 Credit Union stats in the UK, scan the QR code

Plane Saver Credit Union Celebrates 30 Years of Service

In 1993, 15 British Airways engineers established the Plane Saver Credit Union (PSCU) with the goal of "people helping people."

More than 24,000 members now take advantage of a variety of flexible savings options and low-cost loans. PSCU, one of the largest credit unions in the UK, has lent more than £100 million in the past 30 years.

As the chair of PSCU, Ian Atkins, notes, the credit union is commemorating three decades of service. “We have a social responsibility. Community-based credit

unions do an important job but sometimes don’t have the money to even buy a computer,” says Ian Atkins, Chair of PSCU Board and one of the 15 founding members.

Rather than a credit union focusing on an industry, PSCU joined with Harlowsave Credit Union, a community-based membership is open to a variety of industries, making products more widely available than ever while maintaining the same dedication to personal service as it did thirty years ago.

ABCUL CEO, Robert Kelly said:

“On behalf of the entire Association, I’d like to express our huge congratulations to Plane Saver Credit Union on providing three decades of vital service and helping to build financial resilience across their field of membership.

“Well done to all involved –the board, staff and volunteer base should be incredibly proud of what you have built for your members.”

ABCUL Plane Saver Credit Union.

UK Credit Unions Travel to the US for Inclusiv Conference

This year’s contingent of British Credit Unions included representatives of Cardiff & Vale Credit Union, Enterprise Credit Union, HEY Credit Union and The Co-op Credit Union.

Attending the conference as a representative of ABCUL, Head of Member Engagement, John Haslam said: “It was another exhilarating experience to attend my third Inclusiv conference and a pleasure leading our British delegation across the globe to build great connections and learning from Credit Union experts. Memphis is an incredible city, but one of the most poverty stricken in the US, and it was inspiring to see how Credit Unions are able to improve the lives of the financially underserved.”

The conference brings together thought leaders, policymakers, researchers, and practitioners in the fields of financial empowerment and community development to address the tough economic and social justice issues affecting Credit Unions today.

Joining the British delegation was Head of Community & Business Development at

Enterprise Credit Union, Lynn Farrell, who described the week-long trip as an “invaluable experience that has provided me with insights into the latest trends, innovations, and best practices in the Credit Union industry.”

Chief Executive of Cardiff & Vale Credit Union, Caroline Richardson: “I am beyond grateful for the opportunity to share the week with ABCUL delegates in Memphis, TN. The organisers and attendees exude passion for the Credit Union movement and highlight why the work we do is critical to our communities.

“The conference offered informative sessions and great networking opportunities with a chance to learn directly from the US sector. I look forward to using the knowledge gained from the conference to further GB Credit Unions.

Also attending were winners of the CU Futures Class of 2022

collaborative project. Joel Williams of The Co-op Credit Union and Maya Birr-Pixton of HEY Credit Union were both winners from their respective groups and made the journey to Memphis to attend the Inclusiv conference.

“During the conference I met with many peers from Credit Unions in the USA, all of which shared the same passion we have in the GB and that is people helping people,” said Joel. “The networking was incredibly easy, people were genuinely intrigued by the Credit Union movement in the GB, and I felt very welcome. Take home points for me were techniques on how we can collaborate, innovate, and have the greatest social impact to the communities we serve. I’d like to thank ABCUL for providing the opportunity and experience.”

ABCUL

ABCUL credit unions travelled to Memphis, Tennessee in the United States for the largest gathering of community development credit unions in the US.

The Inclusiv Conference is the largest annual gathering of Credit Unions with a mission of financial inclusion in the U.S.!

CREDIT UNIONS IN FOCUS

Growth and sustainability a priority, says MP

Economic Secretary Andrew Griffith MP made a speech at Mansion House on the topic of financial literacy and inclusion. In the speech, the Minister highlighted the important role Government has to increase financial inclusion in communities and believes the cCredit Union sector has a valuable role to play in this.

Speaking to delegates, the Economic Secretary said: “Ever since the 18th century, mutual societies have helped meet the needs of local communities.

“Given their distinct business models, Credit Unions face a less onerous set of regulations

Wolverhamption City Credit Union

announce new

CEO, Tameka Spencer

ABCUL

Wolverhamption City Credit Union

than non-mutual retail banks. For example, Credit Unions have exemptions from the requirements of the Consumer Credit Act 1974, which enables them to offer credit at affordable rates to their members who might otherwise be excluded from credit.

amendments to the Credit Unions Act 1979.

Spencer has worked at WCCU for over nine years and brings a wealth of experience and knowledge from within the sector.

Previously holding the roles of Operations Manager and Deputy CEO, Tameka has been part of the WCCU succession planning since 2021.

“I am passionate about the organisation and look forward to working with my Board, developing new Payroll Partnerships and continuing to grow our membership,” says Tameka. “I joined as a member before I started working at the Credit Union.”

Highlighted at this month’s AGM, WCCU continue to make progress despite the huge economic challenges, and were pleased to report

For example, Credit Unions will be able to offer products such as car finance and distribute insurance to their members for the first time. It’s a good example of proportionate regulation – or deregulation –being used to improve inclusion.”

Read the full transcript from HM Treasury and Andrew griffith MP by scanning the QR.

another surplus this financial year, as well as seeing lending and membership grow.

WCCU were also successful at this year’s Black Country Chamber Business in the Community Awards, winning the Award for Excellence in Diversity & Equality, predominantly due to the progress that it has made in becoming the first Credit Union in the country to be awarded the RACE Equality Code Mark.

Tameka added: “I am proud to be leading Wolverhampton City Credit Union at this exciting time, taking over the reins from Rob Shearing as Chief Executive Officer, who has transformed the Credit Union over the last four years. I will continue to build on what he has done.”

wellbeing”.

“To help further the growth and sustainability of Credit Unions in Great Britain, the government is bringing forward

Credit Union borrowing in 2022 exceeds record £2 billion

Analysis from Freedom Finance finds that Credit Unions are lending record sums to borrowers in the UK, following the surge in borrowing costs last year.

The analysis of the Bank of England shows that total borrowing from Credit Unions saw huge growth through 2022 as consumers tackled the cost-of-living squeeze. Total loans exceeded £2.0 billion for the first time by the end of the year, an annual increase of £261 million or 15%, over the course of 2022.

Credit Union membership also swelled, rising by 60,863 to reach 1,980,964 at the end of 2022 as more borrowers

widened their net in the search for affordable credit solutions.

The Freedom Finance Credit Monitor revealed that average household quoted rates on credit cards rose to their highest levels since 1998 last year reaching 22.48% at the end of December.

Personal loan rates also saw their highest quarterly increase of all time in Q4 2022 although rate increases among both products have since stabilised and nudged down.

Emma Steeley, CEO at Freedom Finance, commented: “Credit Unions are a financial lifeboat for many borrowers and they play a vitally important role within the consumer credit sector.

“We will always support

institutions that aim to increase and diversify the range of products available on the market, particularly those that are targeted at borrowers who may otherwise struggle to access affordable credit.

“We know the dangers that consumer credit exclusion poses to society through our work on loan sharks with the CSJ which suggested over a million people could be victims of illegal lending.”

Tom Luckham creditstrategy.co.uk

Scan the QR to see the full Bank of England quarterly stats for 2022 Q4.

HEY Credit Union

appoint new Chief Executive

The Board of Directors of HEY Credit Union has appointed Matthew Stevens as their next Chief Executive, to succeed John Smith who has moved to a part-time Governance Officer role as he prepares for retirement.

Stevens started his service with HEY Credit Union in 2007, originally in the Lending Department. He was promoted to Project & Systems Manager and then became Chief Operating Officer early in 2022.

Andy Stankard, HEY Credit Union’s President, says: “Matthew has shown enormous aptitude for the role of CEO and everyone on the Board has been impressed with his development over the last year. His determination and energy and also his commitment to our core values match those of his predecessor and I am positive he will take our organisation forward in the way we want.

Matthew commented: “Carrying on from the great work that has been done over the last 24 years and using the experience I have gained I am ambitious about taking HEY Credit Union into the future as one of the leading credit unions in this country. I am looking forward to delivering exceptional service to our members with the support of the directors and our dedicated team of staff and volunteers.”

HEY Credit Union hullandeycu.co.uk

Dates for your diary 2023

World Credit Union Conference

World Credit Union Conference

World Council of Credit Unions (WOCCU)

World Council of Credit Unions (WOCCU)

• 23 - 26 July

• 23 - 26 July

Vancouver, Canada

Vancouver, Canada

Consumer Duty

Consumer Duty

FCA regulation comes into effect

• 31 July

FCA regulation comes into effect

• 31 July

Read more on page X

Read more on page X

Consumer Credit Awards

Consumer Credit Awards

Smart Money People

Smart Money People

• 14 August (Voting closes)

• 14 August (Voting closes)

• 7 September (Digital ceremony)

• 7 September (Digital ceremony)

Credit Unions of Wales Awards

Credit Unions of Wales Awards

Credit Unions of Wales

Credit Unions of Wales

• 19 October

• 19 October

The Coal Exchange, Cardiff Bay

The Coal Exchange, Cardiff Bay

International Credit Union Day

International Credit Union Day

• 19 October

• 19 October

Unsung Hero Awards Engage

Unsung Hero Awards Engage

Nominate a Credit Union staff member or volunteer to recognise their hard work and dedication.

Winners receive up to £150!

Nominate a Credit Union staff member or volunteer to recognise their hard work and dedication. Winners receive up to £150!

2023

• 1 September (Voting opens)

• 1 September (Voting opens)

• 13 October (Voting closes)

• 13 October (Voting closes)

• 16 October (Winners announced)

• 16 October (Winners announced)

John Smith, Founding CEO, Matthew Stevens, New Chief Executive & Andy Stankard, President.

Mortgage lending to rise by 1.2% in 2023 as UK avoids recession: EY

Net mortgage lending is now expected to grow 1.2% in 2023, up from 0.4% predicted in February, according to the latest EY forecast.

Banks are expected to increase their lending this year as the UK economy swerves the predicted recession and the housing market shows small signs of some revival, according to a panel of economists.

Total loans in the UK are expected to rise 1.2% this year, a net increase of £29bn, upgraded from a 0.1% fall forecast in February. Falling inflation, lower than anticipated energy bills and a resilient jobs market mean UK GDP is expected to increase by 0.2% in 2023 rather than contracting, driving an increase in consumer and business

The crisis rippling through the US banking sector has also so far had “limited impact on the UK’s highly capitalised lenders”, EY’s economists added, though

they said risks to the downside are “present within the forecast”.

Laimonas Noreika, founder of HeavyFinance, commented: “With the UK’s improved economic set to see bank lending surging, companies have a new opportunity to invest, grow and develop more sustainable business models. As the global race to increase low-carbon green investment continues, UK firms need to think again about the steps they can take to reduce C02 emissions.

“The wider industry needs to consider how to use external finance to further improve key areas like agriculture and farming, modernising processes as well as saving time and money."

Sjuul van der Leeuw, CEO of Deployteq, said: “With banks increasing access to finance, UK businesses will have the opportunity to access the funding they need to invest and grow the skills of their workforce. As confidence in the economy recovers, key to SMEs achieving rapid growth will be

looking again at key tools like automation and effective marketing platforms to empower staff and win new customers.

“Ambitious businesses cannot afford to operate a ‘business as usual’ approach when it comes to important areas of development like marketing and new business. Turbocharging growth requires the latest technology platforms, enabling businesses to reach new customers and increase their market share.”

Anna Anthony, UK financial services managing partner at EY, added that the UK is “still on the path to economic recovery” but we are “in a more optimistic place than we were a few months ago”.

Rozi Jones, Editor financialreporter.co.uk

Scan the QR code to view the full article.

Money and mental health groups come together for those in need

The UK's financial and mental health organisations are supporting a new manual that instructs lenders on how to assist consumers more effectively.

The Money and Pensions Service (MaPS) has published a new guide titled "Mental Health and Money" that was developed after extensive consultation with professionals in both sectors.

Along with Adferiad Recovery in Wales, MindWise in Northern Ireland, and the Scottish NGOs Change Mental Health and Citizens Advice Scotland, it is backed by the Money and Mental Health Policy Institute, Mind, Rethink Mental Illness, and Citizens Advice.

According to research from the Money and Mental Health Policy

CSJ publish report to tackle illegal lenders

Think tank Centre for Social Justice has published a report entitled ‘Friend or Foe?

Equipping debt advisers to tackle illegal money lending’ in response to their recent survey which found that 7 in 10 debt advisers believe that illegal lending is a growing problem in the UK and over half of debt advisers have been told about a loan shark by a client.

Institute, one in five (18%) persons who live with a mental health problem are also struggling with debt. This finding highlights the close relationship between money and mental health.

This guide presents six methods for financial service, utility, and public sector creditors to offer better support to individuals who are experiencing financial difficulties. These methods include training staff to provide assistance, being more considerate when pursuing payments, and simplifying the process for customers to seek help. Additionally, creditors can allow customers to involve third parties in managing their accounts, offer more forbearance, and proactively refer them to external support.

The guide further advises creditors on how to implement these techniques, provides a list

of resources they can use, and emphasizes the FCA duties that may mandate such actions.

The guide can be viewed by scanning the QR code.

The report sets out a new framework for debt advisers to discuss illegal money lenders with their clients based on the acronym ‘FRIEND’:

Friend – Is the lender really a friend? What happens if the client does not pay?

Repeat – Does this lender lend to more than one person? Has the client borrowed from them before?

Interest – Does the lender charge interest or extra charges? Do these charges change?

Evidence – Has the lender provided evidence of the loan?

Nervous – Does the lender or talking about the lender make the client nervous?

Disruptive – Is the lender a disruptive figure in a client’s life. Do they represent a danger to the client?

More information was provided, including a series of recommendations for tackling illegal money lending on a wider scale. Scan the QR to read more.

Engage marketing support for partner Credit Unions

Social media posts, leaflets, posters and more can be found in the e-pack allowing your Credit Union to easily promote and market Engage products, without the hassle!

Download yours now! Scan the QR or go to engagecommunitybanking.com/marketing