Proposed Merger Announcement

Dear Member,

The board of Derbyshire Community Bank (“DCB”) was recently approached by Money Spider credit union, which operates in South Derbyshire & East Staffordshire, with a view to a potential merger.

Money Spider is a very small credit union with its main base in Swadlincote and it is entirely run by volunteers.  They recognised that small credit unions, like Money Spider, were being left behind in terms of the products and services they could offer; furthermore, it was felt that the regulatory requirements were becoming too onerous for an operation of its size.

It is a common factor in the overall reduction of the number of credit unions in the United Kingdom, that in order to be sustainable, credit unions are having to merge in order to become larger, stronger, and more financially viable.  Consequently, the board of DCB took the request to merge very seriously and after undertaking due diligence into the viability of Money Spider, the board believes that a merger is in the best interests of both credit unions and it has agreed in principle to the merger.  After the merger, DCB will have an increased membership and a stronger potential for future growth.

The next step for DCB is to seek the agreement of its members.  To this end, a special general meeting has been arranged for 6.30 pm on 3rd June, 2019 at Derby Cathedral when all members are cordially invited to hear about, and vote on, the proposal to merge.  A buffet will be available from 6.15 pm.

If the merger is approved by the members at the special general meeting then nothing will fundamentally change for our existing members.  Money Spider has an active membership of around 500 members, (which is significantly smaller than our current membership of approximately 3000 members), and these members of Money Spider will be automatically transferred over to DCB’s platform and then encouraged to engage with us on our online systems.

DCB has the common bond to operate across the whole of Derbyshire, and whilst it does have some members in South Derbyshire it has never advertised in that area knowing that another credit union exists to serve that membership.

The key changes for the bank will be the ability to actively market our services to our new membership and within the South Derbyshire area.  Money Spider’s volunteers will continue to operate in South Derbyshire, but on behalf of DCB, promoting our products and services to those that need it.

Please confirm if you intend to attend the Special General Meeting.

If you would like to contact us regarding the merger, (or for any other reason regarding your account), our contact details are as follows:

Twitter – https://twitter.com/DerbyshireCB

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