In November 2020, Bristol Credit Union announced its plans to merge with Wyvern Savings and Loans Credit Union. This will enable it to cover a wider geographical area, as well as adding thousands of new members and millions of pounds of deposits to its accounts. Expected benefits include the creation of jobs and improvements to the offering of loans to those in deprived areas.
The Companies
Bristol Credit Union (BCU) has been operating as a credit union since 1999 and aims to provide fairer, more ethical savings and loans in a way that supports local communities. It is organised as a not-for-profit social enterprise and offers its services to people who may have difficulty obtaining loans from other sources, perhaps because of a poor credit rating. This makes it a safer option than predatory loan companies that target the desperate. BCU currently has around 15,000 members, mostly in Bristol and the area formerly comprising Avon County Council.
During the 2018-19 period, more than 3350 people were able to borrow £5.9 million thanks to BCU’s affordable rates. Its loan book has grown by 50% over two years, including an increase from £5.5 million to £36.6 million over the last twelve months. Its current deposits total around £7 million.
Wyvern Savings and Loans Credit Union was known as Dorset Credit Union when it was founded in 1999, reflecting its county of origin. Around 3000 members have deposited £1.9 million in total in its accounts. It also has a stated aim of supporting its community through ethical loans and savings. Wyvern’s headquarters are currently in Dorchester, but it has expanded into Somerset through a 2015 merger with Camelot Credit Union in Yeovil.
The Merger
Boards for both companies voted for a merger in September at their respective general meetings. It then went to Bristol City Council, who gave their approval in November. If the two companies merge, it will allow them to pool their resources, to a total of around £12.5 million. Wyvern will now come under the Bristol Credit Union name.
The ability to spread the risk of investments through a larger geographical area and client base should make BCU’s savings and loans safer. It will also mean creating and maintaining more jobs, and ensuring that BCU’s services are more accessible. Some of Wyvern’s volunteer team may be able to step back without worrying about difficulties recruiting for their board.
James Berry, CEO of Bristol Credit Union, said: “This move makes Bristol Credit Union a significant force in the South West of England. Now we’re in a recession, it’s more important than ever to reach those in financial need with fair and adaptable services to help our communities build back better.”
Tim Topper, a member of the Wyven board, said: “This move will allow us to widen our network and to increase our capacity in the Dorset and Somerset area to provide ethical loans and services to those who need them most.”
