A community bank which prevents the public from resorting to loan sharks is set to grow with a new merger.
Swan Community Bank provides support to 3,000 members in Oxfordshire and helps prevent them ever having to resort to pay day lenders and loan sharks.
The bank is undertaking a new merger with Wiltshire and Swindon Credit Union and will operate under the name of Acorn Community Bank from April 3.
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Community banks are different in that they are owned by their members and run on their behalf.
Members who cannot find financial assistance elsewhere are offered affordable loans and are allowed to open savings accounts.
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Swan Community Bank’s board chair Steve Eyre said surviving had been “extremely difficult” and the merger was crucial to the bank having a future.
He explained: “If we didn’t do the merger, I don’t see how we would have survived.
“We have been straight with members about this in meetings we’ve held with them – it was absolutely essential for us.”
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Mr Eyre said the bank’s merger with Wiltshire and Swindon Credit Union was a good fit as they have “shared values” and their team is “doing well”.
Mr Eyre also highlighted that their IT system would equip them for expansion and he pointed to the Union’s track record of providing an “excellent service to their members”.
The average loan given out by Swan Community bank is between £700 and £800 and these are given to people who struggle to get credit at high street banks for emergencies such as car repairs or the replacement of white goods.
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Acorn Community Bank Chair Nick Gallop has said the merger will only result in “new opportunities to grow”.
He added: “It will allow us to benefit from economies of scale.”
However, Mr Gallop wanted to reassure members that the terms under which they had taken out an account with Swan Community Bank would remain the same.
He explained: “Everyone who has an account with Swan will maintain the same kind of account under the same terms and we won’t be forcing changes on anyone.
“We are proud to have won Smart Money People’s award for Best Credit Union.
“The merger will also allow us to exploit the potential of our new IT system.”
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Acorn invested in a new IT system last year and has introduced a simple banking app, with new types of lending set to follow.
Mr Gallop said he was “excited” about the new technology and the merger as they would allow the bank to provide “flexible and accessible services without losing the personal touch that has been a lifeline to so many people”.
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