Scotcash Annual Report 2021-22 - Report - Page 5
2020-21 ANNUAL REPORT & FINANCIAL STATEMENTS
2020-21 ANNUAL REPORT & FINANCIAL STATEMENTS
Welcome...
...to Scotcash’s 14th Annual Report which
underscores how 2020 was a year like
no other. The pandemic exposed deep
inequalities that predate the crisis, with the
worst consequences on those in our poorest
communities and already disadvantaged.
A YEAR LIKE NO
OTHER – HIGHLIGHTS
FROM 2020/21
⊲ Scotcash ‘hardship grant fund’
delivered to 80 vulnerable
customers
⊲ Developed formal relationship
with the Fairer Scotland Team,
Scottish Government
⊲ Full organisational technology
refresh improving connectivity
and efficiency
⊲ Successful switch to full
remote home working
⊲ Staff Survey 2020
⊲ New Social Media Strategy
& SEO Audit
⊲ New partnership on financial
capability with SNOOP
⊲ Experian and other aggregator
partnership development
⊲ Grant funding of £684,349 raised
in the period
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Scotcash worked hard to protect
our staff and customers during the
pandemic. We ensured customers
had, and continue to have, access
to the right advice at the right time,
specific to their circumstances.
Where necessary we put in place
mitigating actions to stabilise their
finances. This included access
to a new Scotcash ‘hardship
fund’ supported by our partners,
Foundation Scotland.
Our staff were trained to identify
signs of financial distress and to
offer forbearance and support,
well in advance of the Financial
Conduct Authority’s guidance to
firms to offer this. We increased
staff engagement through health
and wellbeing surveys as they
worked from home and supported
those staff who were furloughed
for a short period.
We capitalised on our investment
in IT infrastructure and successfully
made the transition to full remote
working when lockdown began at
the start of the financial year. With
the planned reduction in our office
space, we were able to control
costs and improve the financial
position of Scotcash, reducing our
loss from £239,118 in 2019-20 to
£152,541 in 2020-21.
Lending was subdued because of
the pandemic, as it was across our
sector. Gross lending decreased
by 50% while the number of loans
decreased by 57%. The proportion
of new business fell to 30% of all
business, from 43% the previous
year, in order to mitigate risk.
Income from lending decreased by
14% as the existing loan portfolio
reduced at the same time as we
increased our bad debt provision
by 4%, which was significantly
less than the 28% increase in the
previous year.
The challenging year for all only
strengthens our resolve, and the
Board is committed to ensuring
Scotcash can continue to impact
positively on financial exclusion
now and in the coming years.
Morag Johnston
Scotcash Chair
CEO’s
report
It’s always been clear that Scotcash’s
customers are careful with money.
They may be excluded from mainstream
financial services, but they’re exceptional
at managing their budgets.
They get by on small and often
fluctuating incomes and they know
how to make every pound and
penny count.
When Covid-19 struck we feared
the horrifying impact on people’s
lives and health. On top of this we
were concerned the lowest-income
households would pay a huge toll
from the pandemic: that cuts to
pay and cost rises would plunge
millions over a financial cliff-edge.
We were determined to protect
and support our customers and
look after our staff. We adapted all
our operating processes almost
overnight. This report explains how.
The virus was indeed most
damaging to the poorest in our
society. Many had their hours cut
or shifts cancelled, could not work
while home schooling, or were
furloughed and lost a big chunk of
their income. Millions fell through
Government safety nets and
could not get a penny of support.
Expenses jumped for many of the
lowest paid and people eligible for
benefits.
Our team surpassed every
expectation in their efforts to
support people in hardship,
identify benefits and tax credits
and build customers’ digital skills
when a keyboard was a lifeline
from isolation. They phoned and
listened to people. They protected
the financially vulnerable. And they
did it all with care, kindness and
extraordinary flexibility at a time of
unrivalled stress. They are a credit
to the credit industry.
Scotcash and other community
development finance institutions
have been rightly recognised by
politicians of all parties and across
the media for this work. But the
most important recognition has
been from our customers. We’re
proud of every pound we can save
them and every way we help make
their financial situation better.
Sharon MacPherson
Scotcash CEO
“I hope you will join me in thanking
our team for their outstanding
work this year.”
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