How we have progressed over the year Reporting on the key targets as agreed by the Senior Management Team and Board
What we said we would achieve
Progress to date
Develop methodology to assess the risk of the lending portfolio, the social impact, and the activities undertaken to earn the income.
New risk scorecard has been implemented to calculate risk on new and existing customers. The methodology will be reviewed in three months. Social impact scorecard is under revision and will be progressed during the new financial year. We will use information from Durham University to assess the risk and social impact variables combined.
Increase and diversify the lending portfolio through exploration of new markets, particularly Asia.
A research report related to the Asia market was presented in our May Board meeting. There are some limited opportunities for the Society. We will need to assess each of them individually from desktop research while we remain unable to travel.
Ensure that the organisation continues to fulfil its mission while maintaining a balance of risk, which is sustainable in the portfolio, by reviewing our mechanism for pricing and monitoring risk, with the goal of reducing outstanding arrears.
Several changes have been made over the course of the year to both reduce outstanding arrears and implement mechanisms to reduce the likelihood of future bad debts. Enhancements have been made to the data output used for all arrears reporting, making it automated and more accessible. Improvements have been made to money laundering procedures and we have tightened order management controls. We have expanded our network of global debt collectors and have increased the taking of collateral. The latter is factored into the new pricing model, which was launched during the year. Finally, we have a new suite of reports to inform the Non-Executive Directors and Senior Management Team of recovery activities.
Increase Share Capital and investor numbers to meet the increasing lending pipeline.
At the end of the year, Share Capital had grown to £50,750,469, an increase of £4.6m. Investor numbers have also increased, with 496 members joining the Society this year, leading to a net increase of 221.
Embrace virtual opportunities to maintain a strong focus on member engagement, creating opportunities for
We held six successful virtual member events in the year. We also held a virtual AGM with a record attendance in March, followed by eight workshop sessions focusing on producers, Foundation, finance and the organisations’ response to Covid-19. In addition to this we conducted a virtual General meeting in September for the sole purpose of changing our auditor following a competitive tender process
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