Issue - meetings

The Cabinet Member for Finance, Performance and Core Services introduced a report seeking approval for the procurement of a new Credit Union to deliver a local community Banking Service.

Since June 2020, supported by LGA grant funding, the Council had worked with the Financial Inclusion Centre on the options appraisal for access to affordable credit and finance for residents, based on evidence of the need and demand for affordable credit and financial services in the Borough. The Cabinet Member referred to the options considered and advised that the recommended approach was to seek to partner with a dynamic, forward-thinking Credit Union to extend their delivery into the Borough to provide a holistic community banking offer for residents and staff.

It was noted that the preferred solution would require an investment of £300,000 by the Council to build both capacity and membership via a comprehensive communications and advertising campaign.  The Cabinet Member stressed, however, that the investment would represent an invest-to-save opportunity as residents would often turn to the Council for support when in financial difficulties which, in turn, would result in costs to the Council.  The Cabinet Member added that he saw the credit union as the first step towards a longer-term aspiration of establishing a ‘Barking and Dagenham Bank’.

Members spoke of their wholehearted support for the proposal and, in particular, its potential contribution to reducing child poverty which was a significant issue in the Borough.

Cabinet resolved to:

(i)  Agree to the procurement of a contract for a credit union to underpin a local Community Banking service, in accordance with the strategy set out in the report, with the aim of increasing access to more affordable credit, fairer financial services and supportive debt and money advice; and

(ii)  Delegate authority to the Director of Community Solutions, in consultation with the Acting Chief Executive and the Director of Law and Governance, to award the contract for the new Credit Union.