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Caerphilly-based credit union Smart Money Cymru has reported “outstanding performance” over the last 12 months.

The not-for-profit organisation, which rebranded itself as a community bank last year, said it saw a huge rise in the amount of loans to members and a large increase in its income.

Chief executive Mark White said the success was down to an in-depth analysis of the organisation during lockdown and a subsequent modernisation plan.

He said: “The changes we made are bearing fruit and enabling us to lend more to members, some of whom can struggle to find fair finance elsewhere.

“This is crucial as we see the cost of fuel and food rising and household budgets coming under pressure.

“It is also interesting to note that we have seen a large rise in membership as more people in the area we serve are learning how we can help them, and improve their daily lives.”

The growth in membership, he believes, is in part due to the launch of shopping service Smart Goods last year.

He added: “We became the first credit union in Wales to offer an online catalogue of over 5,000 homeware products such as fridges and televisions to our members from a trusted supplier. This has proved very popular and many new members have joined to take advantage of the service.

“The strength of Smart Money Cymru’s performance can be seen against a mixed background of modest advances for credit unions in Wales and across the UK in that period.”

Upsurge

Latest statistics from the Bank of England show that credit unions in Wales increased lending by 3.79% (UK 7.34%) while Smart Money Cymru saw a lending upsurge of 48.53%.

Smart Money Cymru’s income rose by 47.39% compared with 7.28% in Wales and a mere 0.79% across the UK.

Savings by Smart Money Cymru members increased by 9.48%, inline with UK trends, but more than double the figure for Welsh credit unions.

Mr White said: “It goes without saying that the last two years have been very challenging for financial institutions and their customers. We decided to use the lockdown period to take a long, hard look at what we were doing and how we were doing it, and consider what our customers really wanted from us.

“In the first place it became clear that Smart Money Cymru needed to be proactive and communicate with its members, and  also the wider community.

“We have a strong presence on the ground with offices in Caerphilly, Blackwood and Tredegar, and we work hard to reach out to the locality.”

Its modernisation plan included upgrading its technology and streamlining the loan application process. It also places an emphasis on regular staff training and has said it is avoiding automation and a ‘tick box’ approach to lending – preferring to look at the “wider picture” for applicants instead of just their credit score.

Mr White added: “We have served the community for more than 30 years, and as times change, we are determined to change with them and become the sophisticated and flexible organisation our members deserve.”