Welcome to this newsletter from the Customer Union for Ethical Banking, the independent union for customers of The Co-operative Bank and Coventry Building Society.
We've had record-breaking temperatures, which would not have been possible without the man-made climate change. We hope you have stayed safe through the heat. It’s an important moment to reflect on why banks need to follow in the Co-op Bank’s footsteps and stop financing the fossil fuel industry. And why we’d like to see the bank support a fossil fuel treaty, as other ethical banks have already done.
That bit of topical tub-thumping done, this month’s newsletter leads with news from Co-op Congress, along with a quick round-up of other bank news.
Co-operative Bank CEO Andrea Melville addresses Congress. You can see her speech here.
“Of course” Coventry will adopt the Ethical Policy: Co-op Bank at Congress
Co-op Congress is the annual get-together for the UK’s cooperative movement, and the Co-op Bank is a long-time sponsor. The bank and the Customer Union were there, and together joined a panel for wide-ranging discussion on the bank’s future direction.
The lunchtime panel, titled "A conversation with the Co-operative Bank", was organised by Cooperatives UK, and featured bank Chief Executive Andrea Melville and Transformation Director Maria Cearns. Also on the panel were our own Rob Harrison, Shaun Fensom and Malcolm Lynch from our Technical Panel.
Importantly, the bank team said that "of course" the bank’s Ethical Policy will be adopted by the whole merged organisation – something which has not been publicly confirmed before and that we are eager to see. They also said they will look at revising the policy to include more “positive” commitments about what the bank will finance – which we’re supportive of, provided there is no watering down of the bank’s existing commitments not to finance the bad stuff.
On the merger, the bank also confirmed that it is the current intention that eligible bank customers will become members over a period of time post completion. There are still open questions, for example about whether business customers can become members.
The main topics raised by the audience included: tech functionality and the need for the tech provided to business customers to catch up with the personal side; democracy in mutuals, with an audience member pressing the bank on whether Coventry members will get a vote on absorbing the Co-op Bank; and member voting mechanics at the bank’s annual meeting.
All in all it was a positive and interesting discussion, and it was great to hear the bank speak positively about the role of the Customer Union, as well as to see that the bank’s senior leadership is clearly across the detail when it comes to the merger, including its impacts on ethics and cooperative support.
Other Co-op Bank news snippets
The bank is shutting its Wolverhampton branch from 11th September, although customers will be able to use the Coventry branch five minutes walk away from the 14th.
Which? looks into whether the bank’s packaged accounts are a worthwhile investment now they have lowered their prices. In short, yes, if you make use of the included insurance and other benefits.
The bank also removed foreign transaction fees for those using their debit cards, winning some positive coverage from The Sun before the summer holidays.
That’s all for this month’s newsletter; thank you as ever for reading and for supporting the Union.
With best wishes
The Customer Union team
Have you joined the Customer Union yet? It costs £15 a year to be a member of the first ever customer union co-operative, and help us ensure the Co-op Bank sticks to its principles. We also welcome Coventry Building Society members. It only takes a few moments to sign up here.
This version of the newsletter was modified following clarification from the bank on the integration process and timing.
