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Personal lending data at neighbourhood level in Birmingham
Richard BrownePartnership Manager
Birmingham City CouncilTwitter: @richardbrowne80@fairbrum#fairbrumfairbrum.wordpress.com
20th March 2014
Background
• Long campaign by the likes of the Community Investment Coalition, and Centre for Responsible Credit
• Announced by Treasury in July last year, finally released in December
• Danny Alexander: ‘enable smaller lenders identify gaps in the market and allow businesses to hold their local bank to account where they aren’t lending’.
So what has been released?• Participating Lenders - Barclays, Lloyds, HSBC, RBS, Santander,
Clydesdale & Yorkshire and Nationwide.• Data released in December for loans at end of June on:
– Personal Loans– Residential Mortgages– Loans to SMEs
• Postcode sector level• Level of outstanding balances based on BoE reporting
classifications• Does not show the number of loans in each postcode sector –
just the outstanding balances
What is a postcode sector?
• 9,000 sectors in UK• Not uniform in size or population• Not coterminous with other
boundaries• “Birmingham” postcode area there
are 228 sectors, but for Birmingham Local Authority boundary there is 126
Birmingham Totals
• £463 million loans
• Per capita less than England as a whole
• Difficult to get a true picture of average lending
Lending Vs Deprivation
• Some correlation between lending and deprivation although not statistically significant
Citysave Comparison
• Compared credit union loan data with the banking data
• Responsible correlation that there were lending in the same areas
Conclusions
• Data release welcome but limited• Useful for Credit Unions and LAs• Be even more useful to have high interest lenders data• Need more attributes to really begin look at the
complexities of how banks lend• Could look at the HDMA dataset in the United States• Additional information includes: number of
transactions, individual loans amounts, and markers of level of interests
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