A South Wales Valleys’ credit union has recreated itself – as a new Community Bank.
Smart Money Cymru Community Bank will continue to follow the spirit of the Credit Union movement, and its new name reflects its growing range of services, upgraded technologies and flexible approach to lending decisions.
“We think that Smart Money Cymru Community Bank (SMCCB) better reflects what we are doing, and where we are going,” said CEO Mark White.
The new Community Bank, with over 7500 members, has branches in Caerphilly, Tredegar and Blackwood, and was formerly known as Smart Money Cymru Credit Union.
Smart Money Cymru Credit Union Ltd was formed in 2008 following a merger between Caerphilly & District and Blaenau Gwent Credit Unions, and in 2010 the Financial Service Authority approved an extension to cover Newport. In 2020 Islwyn Credit Union and Plaid Cymru Credit Union also became part of the Smart Money family.
Lending to members has increased by 45% in the last year, and membership has grown by 6% in that period as the Community Bank expands and improves its services.
An exciting innovation in recent weeks has been the successful launch of Smart Goods. This offers a catalogue of over high quality 5000 homeware products including white goods and furniture which can be accessed by members using loans from SMCCB.
Mr White explained that Lockdown during the Covid pandemic had seen a strong performance in attracting new members and providing loans to support the community, and had also proved an opportunity to review the organisation and chart its future path.
“We are already embedded in the community, and we are now developing ways to increase this and build on the work done over the years,” he added.
He said an essential part of the role of a not-for-profit financial institution is to strengthen and reinforce the local economy. “Lending to our members means that funds tend to be spent locally, and so wealth is safeguarded within the area, rather than flowing out.
“As a not-for-profit institution, owner by its members, we endorse the concept of the circular economy for building businesses and supporting local employers.”
As national High Street banks continue to close branches and withdraw from offering local face-to-face service, Mr White sees Smart Money Cymru Community Bank (SMCCB), and similar organisations, stepping in to fill the shortfall.
“SMCCB is improving its technical platform and streamlining financial services available to members. A debit card is to be launched, and loan applications can be done online, or in-branch as customers wish,” added Mr White.
“We have two significant advantages over High Street banks,” he said. “These are that we operate locally, and that our lending approach is more flexible and suited to the community.
“Rather than rigid lending criteria based merely on credit scoring systems, we look at a broader picture of our borrowers and take a more overall view when we make decisions on loans.”
Chairman of Smart Money Cymru Alun Taylor said the Community Bank would provide an enhanced service to Members. “They will be unaffected in the short term and can look forward to improved financial services and technology as the new Community Bank develops and grows, helping the community to prosper.
“Our role in the community is already strong, and we plan to strengthen this by improving our offering to members and to encourage new customers to join and benefit from our services,” he added.