tess pendle head of my home finance. why? response to members concerns needs of vulnerable tenants

Tess Pendle

Head of My Home Finance

Why?

Response to members concerns

Needs of vulnerable tenants

The Credit Gap

Doorstep/IllegalCreditUnionsBanks

Debt spirals

Rent arrears

Health/social issues

Member concerns

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

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

CreditBasic bank accountsSavings accountsMoney advice  

Services

The cost of credit today

Customer Relations

Building Credit ScoringFlexibility in PaymentsPersonal Contact Early repayment no penaltiesArrears collection

Process

Initial contactAppointment

InterviewDecisionPayment

(Money advice)

Roll Out

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%

Demographics gender

Demographics - age

Demographics - ethnicity

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