Unity Trust Bank

Unity Trust Bank plc provides specialist business banking services to trade unions, charities and other organisations that operate in the not-for-profit sector in the United Kingdom and, since 2015, its remit has expanded to include profit-with-purpose businesses. Founded in 1984, head office is located at Four Brindleyplace, Birmingham.

History

Originally a licensed deposit taking institution, Unity Trust Limited acquired full status as a bank in 1987.[1][2]

Ownership

Historically, Unity Trust Bank was majority owned by individual trade unions and federations (73.23%) and The Co-operative Bank owned the remainder (26.7%) through its subsidiary, Co-operative Commercial Limited.[1] In 2015, Unity bought back shares from Co-operative Commercial Limited, which reduced The Co-operative Bank's holding to 6.7%.[3]

Unity Trust's new articles of association redesignated all shares into a single class, all ranking pari passu, and removed the different rights of the old classes and created additional shares. As a result, new shareholders have invested in Unity Trust and the Co-operative Bank no longer has a controlling interest or the right to appoint directors.[4]

The Co-operative Bank's stake was put up for sale in 2014, in an attempt to restore Coop Bank's profitability following a capital shortfall.[5]

Activities

In its founding principles, the bank was established as “an organisation identified with and embracing the philosophy of the common good.” It promotes a socially responsible and sustainable approach to banking and lending.[6] Unity Trust Bank was rated top in eight out of nine customer satisfaction categories in the Charity Finance Banking Survey 2015.[7] In 2013, it became the first British bank to be awarded the Living Wage Employer Accreditation Mark.[8]

The Co-operative Bank acted as the bank's clearing agent until 2015, when accounts migrated to a NatWest sort code.

See also

  • Trade unions in the United Kingdom
  • Credit unions in the United Kingdom
  • Social economy

References

  1. Unity Trust Bank History www.senscot.net^
  2. An unconnected Unity Joint Stock Mutual Banking Association was formed in London in 1855. This "Unity Bank" went into liquidation in 1862.^
  3. Suzy Jackson. Double benefits to be realised by Unity Trust Bank Business Quarter, 22 December 2015, retrieved 24 December 2015^
  4. Kirsty Weakley. Unity Trust Bank becomes independent and announces growth plans www.civilsociety.co.uk, 16 Dec 2015, retrieved 24 December 2015^
  5. Jill Treanor. Unity Trust Bank ownership set for overhaul after Co-op Bank's stake sale The Guardian, 14 January 2014, retrieved 17 December 2015^
  6. Vision, mission and values^
  7. Unity Trust Bank out performs competitors in charity banking customer survey^
  8. Unity Trust becomes first Living Wage accredited bank Blue & Green Tomorrow, 9 September 2013, retrieved 24 December 2015^