Building a bank for all Londoners

Southwark faces hardship — unemployment, poor housing and exclusion from fair credit. Many turn to informal ‘pardner’ clubs. The call grows for something safer, fairer, and rooted in the community.

On 18 February, council staff launch Southwark Council Employees Credit Union at Walworth Road Town Hall. It’s the UK’s first with payroll deduction, letting members save and repay loans direct from wages.

Our first office is above the council’s waste depot on Spa Road, and we take on our first paid member of staff – a UK credit union first. Membership stays below 300, but with council support and thanks to the commitment of staff and of volunteers, the credit union survives.

With support from Southwark Council, Southwark Credit Union Development Agency (SCUDA) is formed to drive the credit union forward. With its help, we professionalise with staff, IT and training. A new board brings discipline and energy. Between 1990 and 1993, membership quadruples, savings treble and loans rocket fourfold.

At 221 Rye Lane, opened by MP Tessa Jowell, we become the first industrial credit union in Britain with a high street branch. Membership tops 1,500 and visibility paves the way for expansion.

We buy premises at Denmark Hill and merge with Kings, Borough & Bermondsey and Camberwell credit unions. In 1999, our common bond widens to all who live or work in Southwark. Membership passes 2,000 and assets £2m.

We gain FSA regulation, giving members the same protections as banks. The Smart Savers school scheme gets 1,000 kids started on their first accounts. By 2007, we’re one of the first UK credit unions to offer current accounts with Visa debit cards.

In 2012, we pioneer ethical payday loans and merge with Pimlico Credit Union. By 2013, we’ve moved into new HQ at Heaton Road, merged with Camden Plus CU, rebranded as London Mutual — and even hosted a royal visit from HRH the Duchess of Cornwall.

We open membership to new groups: the Armed Forces, with Johnson Beharry VC first to join; parliamentary staff, including Martin Lewis; and later Transport for London employees. Each step strengthens our place as London’s leading community credit union.

COVID-19 brings loan holidays, digital services and wellbeing advice. As the pandemic gives way to the cost-of-living crisis, we continue helping members avoid high-cost credit and find stability.

We launch ethical mortgages, upgrade current accounts and bring our helpdesk in-house. These changes reflect our commitment to the FCA’s Consumer Duty: putting fair outcomes for members first.

Apps, open banking, even AI — finance keeps changing. What won’t change is our mission: putting people before profit, and helping members build security and confidence for the future.