Chair's Statement

I am pleased to be able to report that 2010 has seen a step change in both the scale and scope of our delivery of affordable credit to financially excluded households and communities. Building on the successful tender for delivery of Dept. of Work & Pensions Financial Inclusion Growth Fund loans, Midlands Community Finance (MCF Loans) was able to set up delivery of affordable loans from offices in Corby, Kettering, Wellingborough, Rushden and Peterborough.

We achieved this success by recruiting new branch loans officers and by developing a network of successful partnerships with local authorities and a range of social housing providers. This allowed MCF to tap into local knowledge to reach our target households on a low wage or benefits who are unable to obtain credit from banks and other mainstream lenders. In many cases this involved the shared use of office and interview space and support with promotion using publicity materials developed in partnership. A measure of the success of our approach has been that last year, half of all personal lending was delivered into the new locations in Northamptonshire.

Alongside the expansion into new areas, our lending into Derby and Derbyshire has also grown substantially during the year. In large part this has been made possible by the hard work, commitment and dedication of our Head Office staff. I would like to take this opportunity to thank them and our Chief Executive Melanie Elliot, for all their efforts over the past year.  
 
One of the key strategic decisions taken by the Board of MCF in September 2010 was a commitment to re-launch our enterprise lending to start up and existing businesses. An opportunity to take this forward became available as part of a Regional Growth Fund bid submitted by the Community Development Finance Association (CDFA) - the Trade Association for the Community Finance sector -- which proposes to set up loan fund for business lending. 

But despite the real progress made this year, the need to tackle debt and financial exclusion and provide affordable credit has not diminished. The impacts of recession with increased job losses and growing unemployment together with a decline in real incomes has seen an increase in households facing problems of debt and financial exclusion. Access to credit has become more difficult as mainstream lenders become reluctant to lend to households with a poor credit history. The danger is that many may turn to expensive doorstep providers or even illegal money lenders. They can end up committed to exorbitant interest rates and expensive repayments. In these difficult circumstances MCF continues to make a real, positive impact on the lives of its customers by offering affordable loans as well as access to basic bank accounts, budget planning and support on money matters.     

I would also like to pay a warm tribute to Vicky Wright who stepped down from the Board of MCF in October. She is a past Chair of the Board and has supported the growth and development of the business for over 5 years. I would like to thank her for all her dedication, commitment and hard work which have led to a major contribution to the success of MCF.

Alec Shelton - CHAIR for MCF Loans