PDF Stockport Credit Union Business Plan 2013-2016

STOCKPORT CREDIT UNION BUSINESS PLAN 2013-2016

Version 2.0

Table of Contents

Executive Summary ....................................................................................................2 1. Introduction.........................................................................................................2 2. Vision and Objectives ..........................................................................................3 3. Review of Stockport Credit Union .......................................................................4 4. Development Plans .............................................................................................6 5. Financial Projections ...........................................................................................7 6. Risks and Opportunities ......................................................................................8 7. Managing this Plan .............................................................................................9 APPENDIX A - Detailed financial schedule ...............................................................10

1 of 10

Executive Summary

Stockport Credit Union's vision is secure savings and affordable loans for everyone living or working in Stockport.

To deliver this vision, the credit union has determined a growth strategy to become more sustainable. This strategy aims to deliver an improved offer to members, an increased ability to be financially self-supporting and reduced risks to the business. This Business Plan for the financial years 2014-2016 summarises the intentions of the credit union, developmental priorities and performance targets. Growth will be based on recruitment of new members, steady enhancements of products and services and development of effective partnerships. The credit union has taken steps to secure its relationships with Stockport Homes and Stockport Council, who have both made generous financial and non-financial commitments.

The credit union is seeking to make short-term improvements in its capacity and resilience to `Get Fit', starting with the appointment of a Development Manager, funded by Stockport Homes, in November 2013. Wider development of products, services and operational strength are planned for the medium term.

This Plan includes a financial projection for KPIs. It is owned by the Board and will be reviewed and updated appropriately.

1. Introduction

A Business Plan for sustainability

This Business Plan aims to provide a summary of Stockport Credit Union's (SCU) ambitions for the future, based on a realistic but positive view of its current position. The Plan includes a financial projection that reflects its objectives.

Following a consideration of its options in the early part of 2013, the Board has agreed a key objective of achieving sustainability and independence through growth. The strategy is to expand its membership across the Stockport community, supported by updated products and more efficient operations, and supported by key partners.

The credit union has created a new role of Development Manager, funded by Stockport Homes. The role-holder starts in November 2013.

SCU B Business Plan Version 2.0.doc

2 of 10

This is a critical resource that will enable the directors to focus on the strategic leadership of the organisation, while the Development Manager leads the staff and volunteer team to implement the initiatives set out in this Plan.

The Plan covers the period October 2013 ? September 2016 in terms of financial planning and overall strategy, but the focus of activities is for 2013/14. In this period, while the Development Manager funding is guaranteed, the credit union hopes that several important steps will be taken towards future sustainability. A focused review of progress should be undertaken in April 2014, with a full review after 12 months.

The credit union's immediate priorities are: ? Creating capacity for growth ? Implementing new loan pricing to improve income to cover service costs and bad debts ? Growing membership to increase savings, loans and net income ? Confirming partnerships / external resources ? Putting staff employment and management on a more robust footing.

The medium term objective is to achieve sustainability through: ? Improving the offer for existing and potential new members ? Improving the efficiency and capacity in the operation ? Strengthening governance.

2. Vision and Objectives

Vision

Secure savings and affordable loans for everyone living or working in Stockport

Objectives for the credit union 2013-2016 Members and the community

? Visible and present in Stockport communities, including physical presence (e.g. a shop, outreach)

? Ensuring the community understands the credit union ? Developing a diversity of members that reflects the community, including corporate

members ? Working in partnership with like-minded organisation

SCU B Business Plan Version 2.0.doc

3 of 10

Operations ? An optimal blend of employees and involved volunteers, providing the right resource to meet expanding member needs ? More / easier ways to pay in and withdraw (cards, internet and telephone services) ? More efficient back office systems and processes, including fit-for-purpose IT infrastructure ? Healthy environment for staff and volunteers ? Fit for purpose offices ? Business-minded in approach and operations

Finances ? Over 50% self-funded ? Diversity of funding ? Maximised income

Unique selling points ? Membership and community ? Sustainable and independent ? Range of products and service that meet members' needs

By 2016, SCU aims to have: ? Reduced financial risks ? Significantly improved its services to its members ? Created a strong platform for future sustainability ? Consistently paid a dividend to its members.

3. Review of Stockport Credit Union

A community finance co-operative with great potential

Profile SCU was formed in 2005, from a merger of several community credit unions that had been in place since 1989. It is a member-led community organisation, with two part-time paid staff funded mainly through a three-yearly grant from Stockport Council and a large number of volunteers. Membership is just over 1,600, and most transactional activity takes place within its 12 local collection points located across the Stockport area. Low cost affordable loans and convenient saving are the two core services currently offered.

SCU B Business Plan Version 2.0.doc

4 of 10

Additional funding from external sources is secured from time-to-time to support operational activities, such as a favourable office rental arrangement from Stockport Council and `in kind' support from Stockport Homes and other key partners.

Environment There is potential demand across the community: Stockport has relatively well-off residents with pockets of deprivation ? the third most-polarised borough in the country. The welfare reform agenda means there is a need for credit union services. In addition, high street providers are not trusted and there are no other credit unions active in the community.

In recent years, as it has grown, the credit union has struggled to make a volunteer-based operating model work sustainably, and the availability of grant-funding to support this model is much-decreased. However, there are opportunities to develop partnerships with like-minded organisations. For example, various advice services are referring to credit unions, and while it is under significant funding pressure, the local authority sees a role for a credit union in Stockport. A concrete example is already in place with Stockport Homes, where following the credit union has identified shared objectives with a partner with longstanding and long term commitment and willing to provide medium term funding.

There is a strong challenge to the credit union from payday lenders, cash generators and weekly payment stores.

Summary

SCU has achieved a great deal to reach its current level of membership, and the value it is offering to so many members.

SCU B Business Plan Version 2.0.doc

5 of 10

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download