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.
Both credit unions have since sought the approval of their membership at Special General Meetings in May and June, where the proposed merger was agreed. The next step is to seek regulatory approval which should be a formality.
The actual physical merger is planned to take place at the start of October which coincides with the start of the credit unions new financial year. There will not be any fundamental change for DCB members, other than an interruption to service one afternoon in October (date to be confirmed) when Money Spider member details are merged onto our systems.
Money Spider has an active membership of around 500 members, (which is significantly smaller than our current membership of approximately 3000 members), and once these members are transferred over to DCB’s platform they will be 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.
We will keep you informed as things develop.
If you would like to contact us regarding the merger, (or for any other reason regarding your account), our contact details are as follows:
- Telephone – 01332 348144 (Monday to Friday – 9.30am to 4.00pm, (except Friday, 3.30 pm))
Twitter – https://twitter.com/DerbyshireCB