By Chris Smith
These podcasts aim to communicate topics of interest from the world of credit unions targeted at managers, directors and other activists within the world of credit unions. I'm a long term supporter
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The podcast currently has 33 episodes available.
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Can credit unions truly be the gold standard of ethical finance? Join our enlightening exchange with ethics-man Barry Clavin, as we scrutinize whether these institutions are walking the talk of their cooperative principles. We traverse the complex terrain of credit union ethics, addressing their genuine commitment to these values, and the potential benefits of adopting a unified ethical identity. Are there any lessons to be learnt from landmark policy of the Cooperative Bank. Barry sheds light on the strategic advantages such alignment could offer, setting credit unions apart in a financial industry often marred by scepticism.
Step into the world of credit unions, where Louise Shields, at Claddagh Credit Union, describes the emotional bonds woven with members and community-centric values. She paints a vivid contrast to traditional banking models.
We explore the manifestation of Hey Credit Unions ethical values through the experienced lens of John Smith, and how it reflects a dedication to a wide array of stakeholders.
Mick McAteer's insights on economic and social justice underscore the importance of authentically presenting ethical standards to attract a diverse member base.
Rob Harrison explains how the Ethical Consumer Association sees credit unions and emphasises the need to ensure the business is effective and efficient (to its customers or members) as well as considering an ethical dimension.
Talking Credit Unions with Chris Smith is a regular podcast dedicated to informing credit union practitioners, leaders and opinion formers on variety of industry topics. To contact Chris Smith, [email protected]
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Listen to a conversation with George Hofheimer, the advisor and author of "Banking on the Human Scale." As we navigate the challenges that credit unions face in the digital era, George illuminates the path ahead, offering strategic insight into blending technological investments with the human service that defines credit unions. The traditional face-to-face service is not lost, but rather enhanced as George makes a compelling case for a harmonious merge of the old and the new. This conversation is an essential precursor to the upcoming Manchester Swoboda Credit Union Conference, in November, that aims to unravel the challenge of credit unions and their digital appetite.
At the Swoboda Credit Union Conference, George Hofheimer shares his wisdom, this time focusing on simplifying operations in the digital era. George expounds on how credit unions can prioritise investments and redefine senior recruitment in the digital age. The digital transformation, laden with complexities, becomes less daunting as George guides us through. George gives us a taste on this digital landscape while retaining that unique human touch.
Talking Credit Unions with Chris Smith is a regular podcast dedicated to informing credit union practitioners, leaders and opinion formers on variety of industry topics. To contact Chris Smith, [email protected]
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Several responses to this question by credit union leaders:
*Rate tart is a term used in banking to describe someone who transfers balances repeatedly, chasing the best possible interest rates on savings.
David McAuley, CEO, Donore CU, Ireland " Are our members 'rate tarts'* and leave the credit union, if we pay insufficient dividend? Our members in the main are not big savers. So, while there will be one or two members disgruntled with no dividend and they do tend to be in the “older” category and not borrowing. For the last few years due to the prevailing low interest (or zero rate interest situation), there has been no clamour for dividends. Also, the CBI has “encouraged” CUs not to give dividends. This year some CUs have distributed but they have needed to justify that decision".
Karen Farrow, Chief Officer, Just CU, England "Historically, we have always paid a min 2% dividend and used to be very proud of this. We were also worried that if we didn't pay it that members would leave and take their shares with them. However about 3 years ago, we changed this and since then have paid nil/low or capped dividend - we have seen virtually no detriment to the share balance".
John Smith, Governance Officer, HEYCU, England "Are our members 'rate tarts'* and leave the credit union, if we pay insufficient dividend? In our experience here at HEY Credit Union, that doesn't appear to be the case at all. It would seem that very few of our members are saving with us because of the return, and more likely that other factors are the prime motivators, such as trust and safety (just want somewhere they trust to look after their money), ability to access funds without fuss, our customer care standards (they feel we look after them), habit, desire to support a local community enterprise, co-operative values, and perhaps lack of awareness of alternatives".
Christine Moore, CEO, Manchester CU, England "No, I don’t think many of our members are ‘rate tarts’, in fact I think the contrary is true. Some people who joined specifically for the Gold Saver a few years ago did take their money out when it closed (less than half). A focus group of savers we spoke to in 2018 overwhelmingly agreed they were not interested in the rate but glad their money was being used for good and to help other people (very heart-warming to hear!)".
Michael Byrne, CEO, Core Credit Union, Ireland Are our members 'rate tarts' and leave the credit union, if we pay insufficient dividend? The vast majority of members are not. Reality is most members have modest savings which wouldn’t attract much interest no matter where they are held. A small number (but do hold proportionally more of the savings) would be rate sensitive and will be looking for a return. I would estimate that less than 5%of savings would be at risk of moving for better rates.
Talking Credit Unions with Chris Smith is a regular podcast dedicated to informing credit union practitioners, leaders and opinion formers on variety of industry topics. To contact Chris Smith, [email protected]
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Paul Jones and Nick Money update us on the wide list of projects, papers and conferences coming up in the next 12 months at the Swoboda Research Centre.
Hear about:
Talking Credit Unions with Chris Smith is a regular podcast dedicated to informing credit union practitioners, leaders and opinion formers on variety of industry topics. To contact Chris Smith, [email protected]
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This podcast captures the views of some financial services industry commentators on the merits and drawbacks of ESAS (Employee Salary Advance Schemes).
Guests on this podcast are:
How a Employee Salary Advance Scheme works:
Specialist scheme operators, which are usually unregulated businesses, often provide the product as part of a 'wellbeing package' to help employees with financial management. Some offer employees an app based platform which sits between the employer’s payroll operations and the employee’s bank account. The employee can then a draw down usually up to half of their accrued or earned wages before their next pay day. The scheme operators usually charge the employee a fee for each drawdown. The employer will then pay the balance of the salary (i.e. net of the advanced payments and the fees for the service) on the next payday. Employees can make multiple drawdowns during each pay cycle and can repeat this again in subsequent periods.
For many employees who do not have major debt problems, an ESAS (Employee Salary Advance Scheme) may be helpful where for a variety of reasons they need to quickly access some of their salary early.
However, for employees with limited options, there are potential risks. Set out below are ways in which employers and scheme operators could mitigate some of these risks.
The FSA says: The risks for employees and employers are:
While the product has benefits, it is important that employees and employers are aware that there may be some risks in using these schemes.
Talking Credit Unions with Chris Smith is a regular podcast dedicated to informing credit union practitioners, leaders and opinion formers on variety of industry topics. To contact Chris Smith, [email protected]
Send us a text
The past two years has been the ultimate stress test for the financial, operational, competitive, and cultural resiliency of credit unions. Leaders have greater depth of insight into the risks facing their credit union and can now better plan for and address those risks, allowing the organisation to focus primarily on longer-term opportunities.
Some credit unions are only now emerging from the lockdown to seek new members in a tremendously competitive and digital world. The economic challenges of the past two years have amplified the essential role credit unions can play in the lives of their members and communities. This environment presents the opportunity for credit unions to re-think not only their operating norms but also how to position the organisation to make an even greater impact on employees, members, and communities.
Listen to the views of:
Send your feedback to Chris Smith at [email protected]
Talking Credit Unions with Chris Smith is a regular podcast dedicated to informing credit union practitioners, leaders and opinion formers on variety of industry topics. To contact Chris Smith, [email protected]
Send us a text
This summer saw the publication 'Gambling, Vulnerability and FCA Compliance' (How financial services firms can achieve the best outcomes for vulnerable customers who gamble), by Sharon Collard and Katie Cross at the Bristol University Personal Finance Research Centre.
Credit unions are seeing increased levels of gambling activity on members accounts, especially since the pandemic. Many credit unions can conduct more forensic assessment of members accounts following the uptake in use of 'open banking'. This has contributed to a rising concern that gambling is causing harm to members and their families. Should the credit unions intervene, or should they mind their own business? Listen to the excellent points of view from industry leaders on this podcast.
Sharon Collard states, at a conservative estimate, at least one in ten adults in Britain (and I guess similar numbers in Ireland too) experience harmful gambling, either because of their own gambling or someone else’s. Gambling-related vulnerability can present a unique set of challenges because of its complexity, the fact is that the member may not be fully in control of their decisions or actions, and the fact is that it may not always be clear what a credit union can do to ensure the fair treatment of customers in this situation.
Do credit unions intervene, or not seems to be the conundrum? I think what we have heard, on this podcast, demonstrates that credit unions are well-placed to address the financial harms linked to gambling-related vulnerability. Some, credit unions are embarking on being quite interventionist and perhaps others less so. Perhaps credit unions can demonstrate their differences, from their competitors, by showing a more caring and concerned response to this growing problem in society. Or maybe our governments will curb the gambling companies and restrict the proliferation of their advertising; but I wouldn't bet on it.
Listen to the contributors to this podcast:
Gambling-vulnerability-FCA-compliance-report.pdf (bristol.ac.uk)http://www.bristol.ac.uk/media-library/sites/geography/pfrc/Gambling-vulnerability-FCA-compliance-report.pdf
Talking Credit Unions with Chris Smith is a regular podcast dedicated to informing credit union practitioners, leaders and opinion formers on variety of industry topics. To contact Chris Smith, [email protected]
Send us a text
The Save and Sound project is now looking further afield for more credit union memories. The project wants to make sure that the efforts of people who worked to set up and run credit unions in the early days of the movement are not forgotten. The history of British credit unions is a diverse and inspiring one and the project wants to hear from anyone who was involved with a credit union in whatever way. Anyone with any information about early credit unions is encouraged to get in touch.
By collecting and sharing the unique personal memories of a diverse range of credit union pioneers, Save and Sound will help many more people learn about the history and heritage of British credit unions.
Save and Sound was originally funded to collect 40 oral history interviews across the north of England, but now the project expands across Britain. The project has already recruited volunteers that have been trained as oral history interviewers or to assist in the development of a new website.
For more information, please visit https://www.creditunionfoundation.org.uk/projects/save-and-sound or contact Abbie Shelton at [email protected]
Talking Credit Unions with Chris Smith is a regular podcast dedicated to informing credit union practitioners, leaders and opinion formers on variety of industry topics. To contact Chris Smith, [email protected]
Send us a text
The purpose of credit unions is obvious, isn’t it? Well, isn’t it?
One of the perceptions about credit unions is that they ‘alleviate poverty’ and I guess many within the Irish & UK credit union movement will accept that perception. I suspect that banks are not perceived as alleviating poverty, by the general public or even bank workers.
So, do credit unions alleviate poverty?
I spoke to three well known experienced credit union people; Paul Jones, Eileen Halligan & Des Morrisey and put this question to them. I started with Dr Paul A. Jones, Director of Research at CFCFE, who is also Reader in the Social Economy at Liverpool John Moores University, where he heads up the Research Unit for Financial Inclusion.
I then spoke with Eileen Halligan, CEO & Secretary at Central Liverpool Credit Union. A well established credit union with over 16,000 members with three branches.
Finally, I got the views of Des Morrisey, the former, CEO of Tallaght Credit Union in Ireland. A 35 year old credit union with 17, 000 members, with over EU65m in assets.
Talking Credit Unions with Chris Smith is a regular podcast dedicated to informing credit union practitioners, leaders and opinion formers on variety of industry topics. To contact Chris Smith, [email protected]
Send us a text
This is podcast is where I look at another mobile 'app' being currently used by some credit unions.
In this edition I talk with the enthusiastic Karen Bennett, CEO of the Merseyside based Enterprise Credit Union, about its fairly recent take up member mobile ‘app’ CUApps.
Firstly, I spoke with the two young Scots tech entrepreneurs, Declan McGallagy and Jack Alison who founded CU Apps over eight years ago. They tell me how they specialise in premium mobile app and chatbot development, working closely with credit unions and their core banking providers to offer bespoke apps that help credit unions reduce costs and engage new and existing members through expert mobile and chat offerings.
We cannot yet know whether people’s new digital communication patterns will continue once stay-at-home, distancing, and lockdown measures are lifted, and people are able to meet more easily, in person again. However, given the major impact the coronavirus pandemic has had on people’s increase in digital communication behaviours, clearly credit unions are increasingly considering how the pandemic is shaping their entire digital future.
Talking Credit Unions with Chris Smith is a regular podcast dedicated to informing credit union practitioners, leaders and opinion formers on variety of industry topics. To contact Chris Smith, [email protected]
The podcast currently has 33 episodes available.
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