Tag: Castle Community Bank

‘Circle of good’ making a difference for Leith-based community bank

2023 has been a year of exceptional growth for Castle Community Bank headquartered in Leith. At the AGM it was reported that total membership has grown to over 46,000 at September 2023.

Chief Executive Adrian Sargent said: “I’m proud of our team, and the growth that we have achieved this year. We remain focussed on our social purpose of supporting communities, whilst helping our members to maximise their savings and manage debt as effectively as possible.

At the same time, our overall current Trustpilot rating of 4.8/5 shows we are getting the day-to-day experience right for our membership.”

Castle Community Bank aims to achieve sustainability through scale and is on track to do so with total assets now equal to £283m, making them one of the largest credit unions in the UK. Deposits have grown to £247m in 2023 and the loan book has increased to £225m in 2023.

Castle Community Bank Chair, Stephen Pearson said: “I like to think of our operating model as a ‘circle of good’.

“Savers like our top quartile interest rates and easy online joining process. Many of them also like the fact that we make their money go further by funding our affordable loan products, enabling people who struggle to access loans from mainstream banks to borrow what they need at affordable rates.

“In turn, prudent, commercial success enables us to grow our community programmes in Edinburgh and beyond: including providing debt advice support, sustainable food bank funding and ethical investment for charities and churches.

“Castle Community Bank is leading the way in expanding the credit union movement in the UK, delivering strong and sustainable growth, underpinned by sound risk management.”

The Scottish credit union was established in 2015 following the merger of two long established credit unions: Castle and North Edinburgh (above), along with the members of the Water of Leith Credit Union Study Group.

The study group was set up with the aim of establishing a Credit Union in Leith.

The difference between credit unions or mutuals and high street banks is they are owned and run by members, instead of shareholders, creating a shared financial community across the UK, which is accessible to everyone.

Funding boost for Castle Community Bank

Social Investment Scotland support for Leith credit union

CASTLE Community Bank, based in Leith, has received £1 million investment from Social Investment Scotland. 

The credit union received the £1M sub-ordinated loan to support their growth and ambition to be a ‘business of scale’, providing ethical and affordable loans and excellent returns for savers.  

Colour photo head and shoulders of bank Chief Executive Adrian Sargent

Castle Community Bank Chief Executive Adrian Sargent said: “I’m delighted that Social Investment Scotland has confidence in Castle Community Bank and has invested £1 million.

“This fantastic investment will reap benefits for not only our organisation but also the communities and members we support in Leith and beyond. This is another important step in our journey to grow the credit union sector and promote financial inclusion in the UK.”

Social Investment Scotland Head of Investments Chris Jamieson, said: “We’re very happy to be supporting Castle Community Bank and its ambitious programme of targeted growth, which will positively impact people in Leith and the surrounding area.

“We see the important role that credit unions play in building a wellbeing economy, particularly when many individuals and households are struggling with the rising cost of living.

“That’s why we are committed to supporting organisations such as Castle Community Bank, who are providing fair and affordable access to finance for the people and communities who need it most.” 

New appointments at Castle Community Bank

Castle Community Bank (Castle) the credit union based in Leith, Edinburgh, has boosted its growth plans and financial inclusion ambitions by making key appointments to its Board and Executive team.  

Experienced non-executive director Stephen Pearson has been appointed as Chair of the Board. Following a career in law and financial services, Stephen has also recently been appointed Chair of the newly formed Financial Inclusion For Scotland.

As Chair of Castle, Stephen will be responsible for leadership of the board, ensuring that it effectively oversees Castle as it continues to grow and support its members through the cost-of-living crisis.

Last year Castle appointed a new chief executive, Adrian Sargent, who, alongside the previous chair, Ian Irvin, has overseen a period of substantial growth to ensure its sustainability in a difficult financial climate.

In addition, on 1 October 2022 Suzanne Gush was appointed as Chief Financial Officer. Suzanne has significant financial services experience and will support the board and management team in this next phase of Castle’s growth.

Stephen Pearson said: “The current cost-of-living-crisis and challenging UK financial climate, illustrate how important it is that all communities have access to fair savings and loan products as well as financial education.

“I’m looking forward to helping Castle and its partners make a positive difference in north Edinburgh and beyond, at such a key time for the organisation.”

Adrian Sargent said: “Stephen will be a great asset for Castle as we continue growing. Being fintech enabled, Castle is now well placed to help its members from a position of increasing strength. With Stephen’s fresh perspective and ethical fintech-savvy, Castle can find new ways of supporting our members.

“At Castle we are about sustainability for both the organisation and the community, and we are passionate about working hard for our communities. I’m excited about the next chapter for Castle, working with Stephen, Suzanne and the rest of the team.”

Castle offers savings and loans like any high street bank, but instead of making a profit for shareholders, Castle can invest surplus revenue into projects supporting its community.

As a credit union, Castle is regulated by both the Prudential Regulatory Authority (PRA) and the Financial Conduct Authority (FCA) who are part of the Bank of England. 

The Castle team sees the community bank as a force for good for its members who can access fair products that would otherwise be unavailable to them from mainstream banks. Castle also seeks to encourage thrift and financial well-being – essential tools for surviving the cost-of-living crisis.

Plan now to avoid festive finance hangover, says Community Bank chief

Falling behind with post-festive finances needn’t be the ‘horror story’ that is often depicted by the media, according to the founder of an Edinburgh-based community bank, which is already dealing with a ‘steady stream’ of savings applications for next Christmas. Continue reading Plan now to avoid festive finance hangover, says Community Bank chief

Beating the big boys: Castle Community Bank raises interest rates

Castle Community Bank, the Edinburgh-based not-for-profit financial institution, has raised its fixed term rates for savers. It now offers 1.65% for two years and 1.75% for three years for fixed term deposits of up to £15,000 – a much better rate than the big banks currently offer.  Continue reading Beating the big boys: Castle Community Bank raises interest rates

People before profits: Castle offers refuge from crippling Christmas credit

MSP for Edinburgh Northern and Leith Ben Macpherson, has been championing a new local credit union, Castle Community Bank, and opened his own savings account with the community bank yesterday.

The new bank was formed in July when two long-established Credit Unions, North Edinburgh Credit Union and Craigmillar, merged and by expanding across the entire EH postcode area the bank aims to introduce innovative and pioneering ways of conducting traditional financial core services.

Chair of the credit union, Rev Iain May of South Leith Parish Church and Ben Macpherson MSP are highlighting the benefits and security of community banks, like Castle Community Bank, this Christmas.

As the Christmas countdown draws to a close, many families can feel that their only option is to put ‘Christmas On Credit’, and for lower income families, this can be very expensive. High cost lenders and hire purchase retailers may be seen as their only option. Castle Community Bank aims to combat high cost borrowing by offering affordable rates to all, especially at times when people need money the most – Christmas.

In a recent survey 17% of Scots admitted to feeling worried about how much they have borrowed, with 6% feeling trapped in a cycle of debt, and often those who need money the most are those who have to pay the highest rates.

Ben Macpherson, a member of The Scottish Parliament’s Cross Party Group on Credit Unions, commends Castle Community Bank’s ethos to break the debt cycle and make financial services accessible to all across the EH postcodes.

Yesterday he visited Castle Community Bank’s office in Wardieburn to show his support, and said: “Castle Community Bank focuses on affordable financial provision rather than on profit. I am proud to open a savings account with them to help encourage this type of ethical banking in Edinburgh, as well as across Scotland.

“Christmas is the time of year where individuals, families and communities can come together, but it can also be a financially challenging time for some. Castle Community Bank can support families in Edinburgh all year round and especially during this festive period, by helping people avoid the risks involved with borrowing money from irresponsible lenders.”

Chair of the Credit Union Iain May has seen the need for affordable, accessible and applicable credit in his time as minister at South Leith Parish Church. He said: “Christmas is a challenging time for many people, especially when it comes to paying for it. In January when the credit card and other bills land on the door mat, people then realise the true cost of Christmas. Castle Community Bank wants to help folk plan their spending by offering affordable options and want to help people avoid the trap of using high cost lenders, to pay for Christmas.

“Whilst we are different in structure to a traditional High Street bank, we adhere to the same robust regulatory requirements and independent scrutiny aimed at protecting our customer’s interests. Castle Community Bank has taken well over a year to launch, because of the systems we had to adopt. Our core principle is to ensure that the vulnerable in our communities do not have to get caught up in a debt spiral or turn to payday lenders to make ends meet.  Residents in Edinburgh will see a significant difference in our approach and I’m sure, will be delighted with what we have to offer.

“Equally, our market research indicated that people across the City would welcome a bank with a strong ethical policy, one that took corporate social responsibility to its heart within every facet of its operation and, importantly, ensures that 100% of all profits were re-invested into the community at all times. On that basis, Castle Community Bank is a bank for all.”

Website www.castlecommunitybank.co.uk

Twitter @castlecombank

 

Continue reading People before profits: Castle offers refuge from crippling Christmas credit