No one else has as much experience establishing credit unions. We have a track record of success setting up credit unions in Sussex, Kent and Surrey and recently completed projects; Churches Mutual and retailCURe.
We have extensive experience of start-ups in other sectors too, including fintechs and charities.
Services for start-ups include:
- Validating your value proposition
- Testing your business model
- Providing market insight
- Growth strategy
- Business planning
- Regulatory review and approvals
Setting up a credit union
There are eight distinct phases to setting up a credit union:
Feasibility. Are your plans for a credit union likely to work? Will enough people join the organisation and is there sufficient seed-corn funding available to meet the start-up costs?
Outline business plan. Start to formulate your ideas, draw up a financial plan and attract funders and Directors.
Negotiating with funders. It might take 3-5 years before a credit union is self-financing, so it needs seed-corn funding. This might take the form of loans, deferred shares, grant funding or in-kind support. We can help you find the right funders and persuade them of the benefits of supporting a credit union start-up.
‘Pledge drive’ and market research. You need to ensure that the savings and loans products will be attractive and that the take-up of your services matches your business plan expectations.
Full business plan. This is the critical document which will be used in support of the application to the Financial Services Authority to establish your credit union. It must include a review of your products, financial assumptions and a sensitivity analysis.
Financial Conduct Authority and Prudential Regulation Authority applications. Credit unions must be authorised by the FCA and the process can take 6 – 12 months. This phase includes compiling the relevant paperwork required for the application itself and negotiating with the Permissions Department and Credit Union Team.
Mobilisation. Once authorised you must recruit the right staff and procure and set up back office systems.
Launch phase. We can provide tapered support as the credit union opens to the public. This can include managing the website, supporting the Loans Officer and contingency planning.