Expansion for Wolverhampton credit union

The new Wolverhampton-based Penny Post Group will have a combined membership of 19,500, accumulated savings of £47.6 million and a loan book of approximately £21.4 million.

It will be amongst the largest credit unions in the UK.

For 26 years, Penny Post has exclusively served members from the Royal Mail family, but with growth plans has been considering options to expand for some time. Voyage Alliance in Manchester has many similarities with Penny Post, in that it serves working members through payroll deduction schemes across public transport, the Department for Work and Pensions and the retail sector.

After careful consideration, the Penny Post board felt it was a great opportunity for Penny Post, and fits with its strategy to grow membership, the loan book and offer a wider range of products and services to members.

“This is a great opportunity to deliver excellent products and services to our members who we place at the heart of everything that we do” said Matt Goulding, chief executive of Penny Post Credit Union.

“I am looking forward to working with our amazing Penny Post team to build a credit union that we will all be proud of.”

Over the past 18 months, Penny Post has undertaken a programme of business improvement across its loan process, decision-making and all areas of customer service with 98 per cent of loan applications now processed on the day they are received.

The cost of bad debt has reduced by £250,000 in the last 12 months alone.

The Voyager Alliance team based at the Manchester office will continue to focus on serving Voyager Alliance and Retail CU members, while the team in Wolverhampton will be serving Penny Post members.

Penny Post Credit Union is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

The not-for-profit financial co-operative is owned by and run for the benefit of its members. It is based in the North West Midlands Mail Centre in Wolverhampton, although with no formal links with Royal Mail Group itself,

Penny Post was formed in 1996 as a joint project between Royal Mail, the Communication Workers Union, Communication and Managers’ Association and Welfare Services.