Credit union kicks off celebrations to mark 25 years of ‘fairer banking’
MARKING A MILESTONE: From left, Credit Union president Andy Stankard, vice president Joe Hendon and chief executive Matthew Stevens
By Rick Lyon, Co-Editor
Biscuits and balloons kicked off the celebrations across the region as HEY Credit Union marked 25 years of providing fair banking services and saving the community millions of pounds.
The Credit Union also announced a programme of special events which will commemorate the silver anniversary in the coming months with the aim of extending the reach and building the membership which has now grown to 18,000.
John Smith, HEY Credit Union’s governance officer, said the organisation is unrecognisable from the one set up in a back room at Hull Guildhall in 1999. Initially known as City of Hull Credit Union, it was only permitted to serve Hull City Council workers and their families.
John said: “Our very first office was down a cross-corridor in Hull Guildhall. It was quite small with no public access, but that’s where we set up our first computer and handled member enquiries and transactions.
“We only opened on Wednesday lunch times but we got quite busy, serving the council staff. The board met monthly around a big table, and the Credit Committee every Thursday tea time to decide on loans.”
John became HEY Credit Union’s first chief executive and was succeeded in May 2023 by Matthew Stevens, who is now building on the achievements of those first 25 years. A new president is coming soon, with current vice-president Joe Hendon due to step up when Andy Stankard completes his term at the AGM in December.
Matthew said: “We have been inviting members to send us their ideas on how we could celebrate our special anniversary and we have now produced an exciting plan which we will be rolling out throughout the year.”
HEY Credit Union was set up with the aim of helping local families spread the cost of major purchases affordably, stay away from loan sharks, and save up for items such as Christmas presents, new clothes for the children, or home furnishings which can be bought from local retailers, again supporting the local economy.
STILL GROWING: Members of the HEY Credit Union team at the head office in Hull. From left, John Smith, Matthew Stevens and colleagues Maya, Sherilee and Cathi
By the end of year one, more than 500 members had joined and managed to save £300,000, smashing all the three-year targets in the initial business plan. The first Member Survey scored it 9+ out of 10 for a range of customer care measures – an accolade for the volunteer team who had to fit their credit union duties around their council day jobs.
At the AGM in in December 2000, the first ever dividend was declared – three per cent on all members’ savings – and it was announced that the 1,000th member had joined. Changes elsewhere would trigger further growth.
John said: “By 2001 the legal restrictions on credit unions were relaxing. A study by Liverpool John Moore’s University argued that opening them up to everyone living or working in an area and resourcing them properly with staff, technology and professional marketing tools, would allow them to champion financial inclusion, combat loan sharks and make a powerful impact on local communities.”
A feasibility study by the Association of British Credit Unions identified huge potential for a ‘live-or-work’ credit union serving the wider county, and in 2002 members of the original City of Hull Credit Union voted for a Hull & East Yorkshire Credit Union.
Beverley Credit Union, with just over 100 members, voted to join in 2005 and over the years the branch network has embraced Bridlington, Goole, Scunthorpe, Grimsby, Driffield and Withernsea.
During the last 25 years HEY Credit Union has issued 81,310 loans to a total value of £59,018,666. The range of products and services has expanded to include junior savings, Christmas savers, matched loans, a family benefit plan, flexi credit and green loans to support moves towards net zero.
Businesses and other organisations have come on board with the introduction of payroll partnerships, under which more than 30 employers provide their workforce with direct payroll deduction for savings and loans.
Other HEY Credit Union milestones will be collated for publication in a mini history booklet as part of the celebrations.
Matthew said: “We’ll also feature blasts from the past on our social media, we’ll publish a new social impact report to show how our work has made a difference to people and communities and we’ll be organising a special anniversary event to bring together founder members, staff, volunteers, partners, and key stakeholders.”
The appearance of Martin Lewis, founder of Money Saving Expert, to open HEY Credit Union’s Hull branch in Brook Street in 2011 underlined the importance of the not-for-profit co-operative approach as a fairer alternative for savers and borrowers.
John said: “HEY Credit Union’s purpose is to provide safe savings accounts and competitive credit facilities, making an important contribution to helping people and families in our region manage their finances, especially during the tough times of the cost of living crisis.
“It is owned and run by its members – the people who use its services – and it aims to keep money in the local economy and provide a real alternative to high street banks. There are no overseas shareholders or London-based financial institutions to cream off the profits as is the case with many high street lenders.”
Matthew added: “Credit unions were quite unknown for people in the Hull area when we first started but now most of our growth comes from word of mouth recommendation. Satisfied members tell their families, friends, work colleagues and neighbours about us, whether in person or on social media, and every week more and more people are joining.”