Unity Trust Bank Case Study

Established in 1984, Unity Trust Bank’s purpose is to help organisations prosper as they contribute to making positive economic, community and environmental change. Since becoming a fully independent bank in 2015, Unity Trust Bank has grown significantly, offering a full range of business banking services including current accounts, savings accounts, overdrafts and loans. By remaining true to its founding principles, Unity’s ambition is to be the bank of choice for socially-minded organisations across the UK.
Supporting regional success
Part of Birmingham’s established cluster of financial and professional services firms at the heart of the city centre, Unity is among a raft of well-known commercial banks that have placed their faith in the West Midlands as a destination to do business, building on a historic legacy of banking tradition.

Both Lloyds Bank and HSBC (originally Midlands Bank) opened their first-ever UK branches in the region over 200 years ago, to drive the expansion of industries being pioneered in Birmingham and the Black Country at the height of the Victorian Industrial Revolution.

Today, Natwest, Lloyds and Barclays all have a significant presence in the region, alongside HSBC UK – which established its new headquarters in 2018 at the heart of Birmingham’s landmark Centenary Square redevelopment.

For Unity, joining the region’s esteemed industry base has allowed the bank to be immersed in the local business community, not only serving organisations as clients, but also offering a range of support services to help businesses give back where it matters most.

Among these initiatives is a 15-year-long relationship with ART Business Loans – a Community Development Finance Institution based in Aston, Birmingham, which aims to alleviate poverty through enterprise by lending to businesses unable to access the finance they need to create or preserve jobs.

ART has received more than £13.2million in funding from Unity Trust Bank since 2005. This support was sustained throughout the Coronavirus pandemic, with Unity providing additional loan support of over £2 million to ART to support small businesses across the West Midlands that had been affected by the impacts of the virus. The funding offered a lifeline for more businesses across a range of sectors, which had been declined financial aid from mainstream lenders.

Dr Steve Walker, Chief Executive of ART, commented:

“We have a client base of 250 businesses and social enterprises, most of which were affected by Covid-19 – from facing the threat of closure to being inundated with demand for products.

“We have had a long-standing relationship with Unity Trust Bank, which has supported our growth and provided invaluable support over the years. These loans have made a big difference to businesses during such unprecedented times.”

Margaret Willis, CEO of Unity Trust Bank, said:

“By remaining resilient and adapting our services to meet the changing business needs of our customers, I am extremely proud that we continue to support socially-driven organisations from the West Midlands and across the UK – even against a backdrop of recent economic uncertainty.

“With a strong balance sheet, operational resilience and a history of safe, sustainable growth, Unity Trust Bank is well placed to continue supporting customers who are delivering positive societal change, while also prioritising the well-being of our employees.”

Being a Force for Good

Unity’s ‘double-bottom line’ strategy means that all customer loans are assessed on the societal impact they will have, so that Unity can continue to re-invest profits to support other organisations who are working to create a better society – whether that be through job creation, educational training, health care provisions or building social housing.

To operate responsibly, Unity also ensures that these values are embedded into the heart of its company culture. Colleagues are invited to make a contribution to an employee-run “Unity in the Community” (UITC) charity fund each month, in addition to being encouraged to spend five working days volunteering throughout the year.

However, as volunteering has not been able to take place for much of 2020, the UITC committee was asked to respond to the Big Issue’s emergency appeal, as vendors were unable to generate income during lockdown. Unity Trust Bank matched the committee’s contribution to the appeal, and was able to purchase a three-month subscription for each member of the workforce.

Elsewhere, the bank is proud to hold long-lasting relationships with charities and organisations on a national scale. As part of its significant three-year sponsorship package with UK arts charity, Music for Youth, Unity has been able to support a number of large-scale events, most recently as the lead-sponsor for Elevate Digital Festival.

The bank is also proud to work with member organisations such as Co-Operatives UK, the Employee Ownership Association, Responsible Finance, Social Enterprise UK and the National Council for Voluntary Organisations.

Taking a Customer-First Approach

Unity’s Birmingham-based customer service centre, in addition to an experienced team of Relationship Managers spanning the breadth of the country, endeavours to minimise call waiting time, and resolve enquiries quickly and efficiently.

During the lockdown period, despite remote working, Unity continued to answer customer calls in under 15 seconds, with 98% of telephone queries dealt with by the first contact.

Half Year Success

Despite increasing economic uncertainty in the first six months of 2020, Unity Trust Bank’s pre-tax profits remained solid at £3.2million, whilst its loan book grew by 10% from £478million to £528million.

As the bank continues to align its operations with the UN’s Sustainable Development Goals, increased provisions in the first half of this year enabled the creation of 409 jobs, 19 community facilities and 383 new bed spaces across the UK. Unity also provided a total of £12.5million to accredited responsible finance providers of the government’s Coronavirus Interruption Loan Scheme, enabling 207 borrowers to access valuable funding when they were most in need.

In the healthcare sector, where the impact of the Covid-19 pandemic has been most profound, Unity continues to support front-line organisations, providing tailored funds for care homes, community pharmacies and social housing providers.

Leading Sustainable Growth

At the end of 2019, Unity Trust Bank’s pre-tax profits stood at £9.1million – a 146 per cent increase over just two years. As it continues to pursue sustainable growth, the bank appointed four new senior members in the first half of 2020.

John Copping joined as Regional Director for the North in February, as Unity moved forward with its national expansion strategy following the opening of its second hub in Manchester. This was followed by the appointment of James Whitaker in March, who joined the bank after 13 years at Barclays to become Unity’s Regional Director for the Midlands.

To lead Unity’s customer proposition and further support its sustainable growth, Mark Clayton was appointed as the bank’s new Chief Operating Officer in July, following more than two decades at HSBC, previously heading up its Premier Distribution arm.

Most recently, Dominic Wade joined the Board of Unity Trust Bank as Chief Financial Officer after 13 years in a number of senior positions at NatWest, and is now working alongside the Executive Committee to shape the bank’s strategy and culture.

As it heads into the new year, Unity’s growth continues with the recruitment of roles to lead the development of its proposition and brand, and to drive customer loyalty.

To find out more about Unity Trust Bank, visit www.unity.co.uk