Unity Trust Bank

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Unity Trust Bank
Public limited company
Industry Financial services
Website unity.co.uk

Unity Trust Bank Plc provides specialist banking services to trades unions, charities and other organisations that operate in the not-for-profit sector in the United Kingdom and (since December 2015) its remit has expanded to include profit-with-purpose businesses. Founded in 1984; head office is located at Nine Brindleyplace, Birmingham.[1] It is the first British bank to be awarded the Living Wage Employer Accreditation Mark.

History

Originally a licensed deposit taking institution, Unity Trust Limited acquired full status as a bank in 1987.[1] An unconnected Unity Joint Stock Mutual Banking Association was formed in London in 1855. This "Unity Bank" went into liquidation in 1862.[2]

Ownership

Historically, Unity Trust Bank was majority owned by individual trade unions and federations (73.23%) and The Co-operative Bank plc (“TCB”) owned the remainder (26.7%) through its subsidiary, Co-operative Commercial Limited.[1] In December 2015, Unity bought back shares from Co-operative Commercial Limited, whereby TCB reduced holdings to 6.7%.[3] Unity’s new Articles of Association redesignated all shares into a single class, all ranking pari passu, removed the different rights of the old classes and created additional shares. As a result, new shareholders have invested in Unity and TCB no longer have a controlling interest in the Bank or the right to appoint directors.[4]

The Co-operative Bank's stake was put up for sale in early 2014 in an attempt to restore profitability following a capital shortfall, which resulted in a rescue by its bond holders – led by US hedge funds – and the parent Co-operative Group ceding control.[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 September 2013 it became the first British bank to be awarded the Living Wage Employer Accreditation Mark.[8]

The new Articles of Association agreed in December 2015 expanded the Bank’s activities beyond trades unions and charities (and other not-for-profit organisations) to include businesses demonstrating a ‘profit-with-purpose’ social mission.

Products

Unity Trust Bank offers secured loans as well as current and deposit accounts for organisations via telephone and internet banking services. While they have no branches, an encashment facility enables transaction at some nominated high street banks or branches of National Westminster Bank, RBS and Ulster Bank. A Post Office cash account paying-in facility is offered with Santander UK.[10]

The ALTO prepaid MasterCard, issued on behalf of Unity Trust Bank by WEX EUROPE, allows customers to load funds from their account and withdraw cash at an ATM. Unity has partnered with Lloyds Bank to provide the Unity Corporate MultiPay card, giving organisations a greater level of spending control.[9]

See also

References

  1. 1.0 1.1 http://www.senscot.net/view_art.php?viewid=12861
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  6. https://www.unity.co.uk/who-we-are/mission-vision-and-values/
  7. https://www.unity.co.uk/unity-trust-bank-out-performs-competitors-in-charity-banking-customer-survey/
  8. Lua error in package.lua at line 80: module 'strict' not found.
  9. https://www.unity.co.uk/banking-services/prepaid-card/

External links