LCCU plays a significant role in alleviating poverty, which is why it has an ambitious expansion programme. LCCU wants to extend its services to tens of thousands more people so as to reduce financial exclusion and the level of poverty in the community.
In the next three years, LCCU expects to double membership, double the value of its savings and more than double the value of its loan book.
Plans for the future continue to be very ambitious. Given the social impact LCCU makes, it wants to continue to grow the credit union as it has done in the past 10 years. The aim is to increase membership from 15,000 to 30,000 and the loan book from £9.8m, to £20m by the end of 2019, with much more in future years.
This growth will be delivered by:
- Encouraging more people to save by offering competitive dividend rates on savings and providing schemes that allow people to save through salary deduction;
- Continuing to offer highly competitive market leading loan interest rates;
- Continuing to offer excellent quality service to members;
- Strengthening their balance sheet to ensure that they are delivering sustainable growth in LCCU's community.
LCCU are looking to offer more loans by creating new products such as revolving credit facilities and giving access to services through aggregator websites such as Money Supermarket.
The credit union wishes to increase the percentage of members who repay their loans by way of a payroll deduction scheme with their employer. Experience and analysis shows that deducting repayments at source significantly reduces the risk of a loan going wrong.
LCCU wants to improve its regulatory capital position. Regulators across the world are increasingly keen to ensure that financial institutions are robust in the face of possible future crises. LCCU is required to show that it has a balance sheet capable of withstanding financial stress. That means that if it wants to grow, it needs to increase regulatory capital.