Awards 2011 Big Tick Logo - Building Stronger Communities

Building Stronger Communities, Highly Commended

Northern Rock plc - Tackling financial exclusion in partnership with credit unions

Building Stronger Communities
Highly Commended 2011

Volunteering for STCU was immensely rewarding. It gave me the opportunity to use my skills and expertise to have a lasting effect on STCU and the lives of the individuals they serve.

Mark LongbothamE-commerce Proposition Manager, Northern Rock

A partnership which enabled a small community-based bank relieve the financial hardship of individuals and families resulting from poor money management, unmanageable levels of high interest debt and no savings.  In 12 months the community bank recruited 425 new members, increased deposits by 4% and their loan fund by 41%.

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Background

Northern Rock is a publically owned mortgage and savings bank, headquartered in Newcastle and with 74 branches. The bank’s community programme has been developed since 2007 during a time of unprecedented change and uncertainty for the organisation which was severely impacted by the banking crisis, with employee numbers reduced by 60% in the last four years. Northern Rock’s community programme is built on the giving of time and money. Skills based volunteering is used to drive employee engagement and financial support is provided via the Northern Rock Foundation to which a % of profits are donated. Community investment activities are focused on communities and individuals in financial difficulties – to use the skills of a financial institution to best effect and deliver greater impact through a focused approach. 72% of volunteering activity is focused on this issue.

The project

Interior of Bridges Credit Union, for Northern Rock Building Stronger Communities Award 2011 entry

A key project in Northern Rock's programme is a partnership with South Tyneside Credit Union. This has helped it rebrand and move to high street premises as ‘Bridges Your Community Bank’.

Northern Rock colleagues in marketing, risk management and legal have supported STCU’s strategy to increase sustainability and reduce reliance on grant funding through building organisational capability and growing the loan book whilst improving cost efficiency.

The project was started in September 2009 and is ongoing. It has delivered 60 days of specialist support to date. This is support STCU needed but could neither access nor afford.

The partner sponsor has worked closely with the CEO to provide input and guidance, understand and agree areas of focus and requirements.

Impact

Societal benefits

  • Credit union was renamed, rebranded and moved to prominent new high street premises – now trading as Bridges Your Community Bank – customers know what they do
  • In 12 months recruited 425 new members, increased deposits by 4% and their loan fund by 41%
  • Recruited 6 new volunteers to support the day-to-day operation of the credit union. Two jobs secured through the creation of 12 month contracts for two STCU temporary employees previously funded by Future Jobs Fund
  • Website hits increased by 126% from 232 per month in Aug 10 to 525 per month in Jan 11

Business Benefits

  • Colleague engagement - overall engagement score in 2010 was 66%, which scores favourably to industry averages. One colleague who volunteered for STCU was recognised as a 'Rock Star', Northern Rock's staff recognition scheme.
  • Aligning the business behind a common cause - In 2010, a target of 50% of volunteering activity aligned with the community vision was set. By the end of 2010, 72% had been achieved.
  • Skills development - 15 colleagues have supported the project. The volunteers from risk and legal were motivated by the opportunity to apply their skills and expertise in a new and very different environment.

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