As traditional banks retreat from many parts of Wales, a Community Bank is warning that more and more people will be left without basic financial services.
Mark White, CEO of Smart Money Cymru, is concerned that the cost-of-living crisis, coupled with the accelerating programme of bank closures, is leaving whole communities behind in terms of essential banking facilities.
“The consequences of this for Wales are serious,” he said. “There have always been communities who have been unable to access fair banking for various reasons, and they have fallen victim to unscrupulous and illegal lenders who prey upon the vulnerable. My worry is that this group is growing and that whole communities are in danger of financial exclusion leading to long term social problems.”
With this in mind, the Community Banking and Credit Union sector in Wales is fighting back, moving into local areas vacated by the big banks and offering sophisticated financial services. “Thanks to improved technology we can now offer first class financial services to Members, providing them with phone and tablet apps to operate accounts, and will soon be launching a debit card. As an example, we recently established a presence in the Community Hub in Penywaun near Aberdare and are opening a facility in Llandrindod Wells.”
Mr White welcomes plans to develop banking hubs across the UK with many planned for Wales. These shared spaces are a partnership between the four main banks, ATM network provider LINK and the Post Office.
“There have been discussions with Welsh Government about including Credit Unions and Community Banks in these plans and I very much hope this can be taken forward. We have direct experience of developing banking hubs in communities, and our services would be an excellent fit with what is being proposed.”
“Our developing technology means that your local Credit Union or Community Bank can now offer virtually everything that the High Street Banks traditionally provided, but in a helpful and inclusive environment aimed at the broadest range of clients possible.”
The approach is different to that of other financial institutions in the UK. “When we assess applications for loans and other services, we don’t look only at the digital Credit Record of the applicant. We take an overall view of their circumstances and if we can say Yes, we will,” added Mr White.
He says Welsh Government is providing considerable support to the sector. “They are extremely supportive of what we are doing and keen to see our services expand into local communities where banking is problematic.”
This is demonstrated by the rapid expansion of Smart Money Cymru into new areas, merging with existing Credit Unions and installing new technology to bring them up to date. “We recently merged with Brecon and Llandrindod CUs and, with support from Welsh Government, we are modernising and improving their offer to their members.”
Smart Money Cymru now has a branch network in the Valleys and Powys, and Membership has climbed to over 11,000, and is growing steadily. Offices in Caerphilly, Blackwood, Tredegar, Penywaun, Brecon and Llandrindod Wells are staffed by a professional team assisted by volunteers, and the plan is to develop the network with further mergers.
“The key to this is improved technology which enables us to rival the offer of the large banks and give our Members the financial services they need and deserve,” he added.
“I am proud to say that your local Credit Union is, these days, a modern institution standing shoulder-to-shoulder with the leading banks and I would urge people who need financial services to contact us and see how we can help.”
As a non-profit organisation, Smart Money Cymru exists solely for the benefit of its Members, recycling income and putting it back into the locality rather than distributing it to shareholders.
The Credit Union movement is growing stronger. Alun Taylor Chairman of Smart Money Cymru, said: “The seeds of this were sown during the industrialisation of the UK with the Co-Operative Movement when people banded together to support their localities and in many ways we are seeing a resurgence of this spirit as people grapple with present-day problems.”
