Barclays Credit Union Programme Application Form

Barclays Credit Union Programme Application Form Year 1 - 2015 1 Unrestricted distribution Barclays and Credit Unions

About Your Organisation

About Your Credit Union

Key Financial Data

Products and Services

Supporting members with money management and delivering financial education

Assessing Development Needs

Development Strategy

Additional Information Required

Further Information for Applicants

Annexes

Barclays Credit Union Programme Application Form Year 1 - 2015 2 Unrestricted distribution Barclays and Credit Unions

Barclays is a proud supporter of the credit union sector. Since 2004, we have given over £4 million to community finance in the UK, supporting over 100 credit unions and CDFIs to innovate and grow.

Antony Jenkins says, “Barclays has a long and proud history of supporting credit unions - we recognise the sector plays a crucial role in a healthy economy. That’s why, as part of our new programme, we are committing £1m of support to help improve the skills and capabilities of credit unions across the UK. Through this programme, as well as the time and expertise of our colleagues acting as mentors and trainers, we’re contributing to a sustainable positive impact.”

In April 2014 Barclays announced a further £1m of support to the credit union sector over the next four years. We have spent time consulting with the sector on current needs and have now evolved our support into this new programme focused on developing robustly evaluated training and direct support. The programme will focus on increasing the capacity, skills and resilience of credit unions so they can grow and become more effective and sustainable organisations benefitting even more households. We are committed to working with the sector to develop effective training and support resources and methods which we can make available to all credit unions.

The new pilot programme is open to all credit unions in the UK, regardless of affiliation. Through this programme, we hope to encourage collaboration, identification and sharing of best practice, and the development and enhancement of key skills and operational practices to promote growth and improvements across the sector. This in turn will allow credit unions to better meet the financial needs of their members and support more financially excluded and underserved households to manage their money and access and use appropriate financial services. It is being delivered through a number of expert delivery partners: Toynbee Hall, ACE Credit Union Services and UKCreditUnions Ltd, with the involvement of staff and senior executives from within Barclays. The programme is being independently evaluated by the Financial Inclusion Centre.

The programme will fund a team of specialists who will work with participating credit unions to explore their key support needs and priorities and then develop and deliver tailored training and support that will help make a sustainable impact in the sector, improving the skills and capabilities of selected credit unions and their members across the UK. This is a collaborative learning programme; we will robustly evaluate the delivery methods and impact so we can identify what works for wider sharing.

It will run along two main strands:

- Building capacity of selected credit unions to support Directors, senior staff and other personnel to improve their core skills, capabilities and operational practices, across themes such as; risk management, financial planning, governance, lending operations, customer service and many more.

- Improving financial capability and resilience through the provision of financial guidance skills training for credit union staff and volunteers. Credit unions can then target those segments of credit union membership who are struggling with their finances and may be more likely to default or be rejected for lending.

Selected credit unions will engage in both strands of the programme. The training programme will be tailored to the specific needs of each participating credit union, and therefore could cover a number of core areas of development and support.

A core part of the programme is commitment of the time and expertise of our Barclays colleagues. Each participating credit union will be linked with a local branch partner, as well as given access and support to a variety of subject matter experts across the bank based on their specific support and development needs.

The selection criteria will be based on a number of factors, including geographic consideration (to ensure we are able to provide support from Barclays colleagues), level of development of the credit union and appropriateness of our resources to the credit union’s specific needs and development priorities.

This application is for the first year of the new programme between April 2015 and April 2016. We will select a number of credit unions at the beginning of the programme year, but please note that we will providing the training on a rolling basis throughout the 12 month period. Therefore, there could be some delay between when a credit union is selected for the programme and when the training is received.

Barclays Credit Union Programme Application Form Year 1 - 2015 3 Unrestricted distribution We very much hope that you will consider applying to take part in this exciting opportunity to access high quality and robustly evaluated training and support which will help your credit union adapt to the new regulatory environment, strengthen your governance and commercial knowledge and skills, and support your community in building stronger money management and financial resilience skills and behaviours. We look forward to receiving your application.

The application deadline for Year 1 will close at 10:00 am on Monday 30th March 2015. Applications will only be received via email; hard copies will not be accepted.

Please send your completed application to:

[email protected]

Barclays Credit Union Programme Application Form Year 1 - 2015 4 Unrestricted distribution Section A: About your Organisation

Registered name

FRN Number Registered address

Operational address (if different)

Tel No (main switchboard number)

Website

Year established

Year-end date

Affiliated to trade body? Please state which

Main contact details for this programme Email:

Tel number:

Are you participating in the Credit Union Expansion Program (CUEP)?

Barclays Credit Union Programme Application Form Year 1 - 2015 5 Unrestricted distribution Section B: About your Credit Union

Please provide information correct as at date of latest Annual Return

Description of common bond (live, work, employee, association)

Estimate of eligible common bond adult members

Number of members Please provide data for last 3 years (Note: please provide data for accounts that have been active in the past 12 months. Please exclude dormant accounts. Year Adult Junior Total Current 1 year ago 2 year ago

Number of staff (current) Full time equivalent (FTE) Full time Part time

FTE Number of volunteers (current)

Barclays Credit Union Programme Application Form Year 1 - 2015 6 Unrestricted distribution Section C: Key Financial Data

Current value (as at latest Value 1 year ago Value 2 years ago date of Annual Return)

Non-deferred shares

Deferred shares

Total Assets

Share to loan ratio

Capital ratios

Liquidity ratios

Reserves

Dividend levels

Income from grants and donations

Operating expenditure (excluding bad debts)

General other income*

Total income

Surplus/loss

3 months 3 - 12 months 12 months +

Total arrears

* This includes entrance fees, interest from loans to members, bank interest, other investment income, profit on sale of investment and assets, insurance commission, annual membership fees, bad debts recovered, admin charges for juvenile deposits and ancillary service charges.

Barclays Credit Union Programme Application Form Year 1 - 2015 7 Unrestricted distribution Section D: Products and Services In this section please provide brief description of products and services you offer to members.

Product/Service Description of each type of product Savings accounts (please list each product)

Credit products (please list each product)

Transactional bank account/current account (please list each product including pre-paid card if you offer one)

Insurance products offered to members

Barclays Credit Union Programme Application Form Year 1 - 2015 8 Unrestricted distribution Section E: Supporting members with money management and delivering financial education*

*Financial education – this can be 121s, workshops, drop-in sessions, information leaflets, etc.

In this section, please briefly tell us how you support your members with their money management capabilities. Please also include how much time and capacity (i.e. members of staff/volunteers/expenses) you spend on doing this (250 word max).

Barclays Credit Union Programme Application Form Year 1 - 2015 9 Unrestricted distribution Section F: Assessing Development Needs

This programme is all about supporting selected credit unions to build capacity. To help us do this, we need to assess which areas of your operations would benefit most from the capacity building programme. Please:

1. Rank from 1 to 10 in terms of importance which of the following operational areas you think would benefit most from capacity building support. 1 means most important, 10 least important; and

2. Based on a scale of 1 – 4, please tell us how you rate your current effectiveness in this area

1 = needs improvement; 2 = average; 3 = good; 4 = very good.

Please read explanatory notes in Annex 2 for further description of operational areas before ranking and assessing current effectiveness.

Operational Area Importance Effectiveness

(Rank 1 – 10) (Rate 1-4) Capital management

Loan book management

Risk management

Understanding good governance, board professional development

Staff and volunteer development

Policies and procedures

Legal and regulatory issues (prudential and conduct of business)

Product development

Service issues and complaint handling

Understanding social impact

Barclays Credit Union Programme Application Form Year 1 - 2015 10 Unrestricted distribution Section G: Barriers and Recurring Issues to Supporting Members with Money Management

Please tell us about any barriers your credit union experiences or any recurring issues you face when delivering financial education. You can choose from the list below or tell us in your own words in the text box below (max 250 words). For those you have indicated “Y”, please rank in order, 1 being the most significant barrier to delivering financial education, 13 being the least significant.

Please indicate Please rank (Y/N) (1-13) Not enough time Lack of adequate/appropriate space Not enough experience or knowledge of how to support someone with money Not enough staff or volunteers to do this work Lack of strategy to deliver this work Lack of knowledge of local community and where to signpost/refer Lack of partnerships with other local organisations Little confidence of staff/volunteers Lack of interest among members in this work Inadequate marketing Not enough funding/resources Little capacity for continual development Other (please use the text box below)

Barclays Credit Union Programme Application Form Year 1 - 2015 11 Unrestricted distribution Section H: Development Strategy In the following section, please outline using between 250 and 750 words any current strategy to develop your credit union and strengthen your current membership base including whether you plan to offer new products. Please tell us what you think are the three key challenges facing your credit union.

Barclays Credit Union Programme Application Form Year 1 - 2015 12 Unrestricted distribution Section I: Additional information required In addition to the information supplied in this application form, we would ask you to provide the following reports (as at date of latest annual return):

1. Current Strategic/Business Plan

2. Latest annual return to PRA

3. Latest annual report

Barclays Credit Union Programme Application Form Year 1 - 2015 13 Unrestricted distribution Annex 1: Frequently Asked Questions

1. Can we pick and choose between capability and capacity themes? Do we really have to do both strands? Every participating credit union will receive training for both strands of the programme.

2. How will training be delivered? Training will be delivered through a combination of face to face training via a team of specialists, as well as through relationships with Barclays staff, telephone support and some access to digital training.

3. How much time commitment required? Hours/weeks; overall duration of the programme? Time commitment will vary based on the needs of each credit union participating in the programme. As the training will be structured on a bespoke basis around the needs of each credit union, time commitment will vary as well. We will endeavour to work around your existing commitments to the best of our ability.

4. How much flexibility in dates of training delivery? We will endeavour to structure the training dates around your existing commitments. We will support 8-10 credit unions in each year of the programme and training will be delivered throughout the course of the year. Therefore we will be delivering training to some credit unions later in the year, in order to avoid most scheduling conflicts.

5. What input from the credit union will be needed for evaluating and/ or publicising the programme? The Financial Inclusion Centre is managing the monitoring and evaluation of the programme and will be working with each credit union on the data and information they need to complete a robust evaluation. Barclays will be responsible for all communications about the programme with no communications requirements for credit unions.

6. Will expenses (eg any travel to training) be paid? Face to face training will take place at the credit union to ensure that there are no costs to the credit union to participate in the sessions. All materials will be made available to the participating credit unions at no cost.

7. Will Barclays employees be involved in programme delivery and how? Barclays employees are excited to have an opportunity to work with credit unions. A core part of the programme is commitment of the time and expertise of our Barclays colleagues. Each participating credit union will be linked with a local branch partner, as well as given access and support to a variety of subject matter experts across the bank based on their specific support and development needs.

8. When will we hear outcome of application, and when would the programme start? The application submission period ends on 30 March 2015 and we hope to contact all credit unions by 1 May 2015. The programme start date will vary as the training will be conducted on a rolling basis over the course of the year. This will be arranged on an individual basis with each participating credit union.

9. What is the deadline for applications? The application deadline for Year 1 is 30 March 2015.

10. Is any direct funding available? There is no direct funding available as part of this programme. Selected credit unions will receive support through training and training materials for staff and volunteers.

11. Who is providing the training? Training will be provided through specialists from Toynbee Hall, ACE Credit Union Services and UKCreditUnions Ltd. Training will be supported with Barclays colleagues as well.

12. I have some questions about the form, where can I get help? Please email us at [email protected] with any questions you might have.

13. Can I apply now for training next year?

Barclays Credit Union Programme Application Form Year 1 - 2015 14 Unrestricted distribution This application is only for Year 1 of the programme. If you are not successful in this year, we encourage you to apply in subsequent years. The application will be offered again in early 2016 for Year 2 of the programme.

Barclays Credit Union Programme Application Form Year 1 - 2015 15 Unrestricted distribution Annex 2 Explanatory notes for Section F

Operational Area Notes Capital management This includes: Liquidity policy, liquidity management, capital adequacy requirements, capital and liquidity monitoring and reporting, investment of surplus funds, raising external capital, sources, understanding stakeholder requirements, products (grants, senior or subordinated debt), deferred or non-deferred shares. Loan book management This includes: Lending policies and procedures; performance monitoring, credit control, arrears and delinquency management. Risk management This includes: Developing a risk register, identifying and managing financial risk including interest rate and funding risk, IT risks, fraud management, contingency planning, human resources risks, reputational risks, security risks, business continuity plan, and appropriate insurance held. Understanding good governance and This includes: how to ensure appropriate board structures are in place, board competencies Board professional development required, collective and individual responsibilities of board members, identifying board strengths and weaknesses and which areas need developing, and succession planning. Staff and volunteer development This includes: identifying skill gaps, training and professional development for staff and volunteers Policies and procedures This includes: developing appropriate policies and procedures on key business areas and helping board and senior management as well as supervisory committees monitor compliance with policies and procedures Legal and regulatory issues (prudential This includes: understanding relevant legislation and regulation, monitoring compliance with and conduct of business) regulations, reporting to and building relationships with regulators (PRA and FCA) Product development This includes: how to undertake market research, product pricing, how to develop marketing strategies including advertising and distribution Service issues This includes: understanding what treating customers fairly means, effective complaints handling Understanding social impact This includes: understanding and measuring the social impact of your credit union activities on members and local communities

Barclays Credit Union Programme Application Form Year 1 - 2015 16 Unrestricted distribution