by David Smith, on Sep 23, 2020 1:31:21 PM
Good Morning all,
Welcome to September’s monthly digest!
For this month’s Savings update, I’d like to hand over to our new Director of Savings to tell you about a restructure to the team, what it now stands for, an insight into our products and why we need to constantly review them, and a glimpse into the future.
Because of the extra focus on savings there is a bit less on mortgages this month, but we have the usual network updates, community news and details of our online events. There’s also this month’s Growth Series content, which features the full T&C Guide, complete with various links to resources to ensure this activity is as effective as possible for both your colleagues' development and the growth of your business.
Don't forget that all previous Growth Series blogs are available here.
We’d love to hear what you think of these emails. There are some smiley faces at the bottom of the email you can click on to tell us what you think.
Savings
The Savings team underwent a bit of an overhaul in May, to bring greater focus to our savings products and services, which have sometimes taken a back seat to mortgages in recent years. Tina Hughes (who many of you will remember from our proprietor event in Leeds last year talking about mortgages) was appointed Director of Savings, and the old Savings team reshuffled to create the Savings Trading team (to manage our current savings range), and the Savings Proposition team (to develop future products and services).
More on the savings team
Tina says: “Creating the distinct teams has given us the ability to focus on doing the very best for our customers. It allows us to really proactively manage and focus on our savings product range and processes, as well as building relationships with the distribution teams and thinking about what propositions and products are needed for the future, and how we deliver them. So far, we’ve made a great start and I’m excited by the thought of where it will take us.”
What we stand for
Tina continues: “we’re here to look after our customers’ needs – both now and in the future. To do that, we follow some guiding principles that act as a checkpoint; ensuring everything we do is ultimately adding value for the customer, from spotting an opportunity to increase an interest rate, to improving some processes in the background, making things run more smoothly. Our principles include things like making sure our existing customers are always treated fairly; paying the highest interest rates we can afford - not the lowest rate we can get away with; and increasing our focus on supporting customers’ life goals. Hopefully it’s reassuring that we’re not making things up as we go along! We must be doing something right, as in June we were awarded the 2020 MoneyFacts Best Building Society Savings Provider Award!
Our products
“We’re often asked why a popular product has been removed from sale, or why we can’t be at the top of the best buy tables all the time. The answers are many and varied but, put simply, we have to ensure that YBS has:
The right amount of savings funding…
…at the right time
…and the right cost
…so that we can drive our mortgage ambitions as efficiently as possible
We use a mix of core products, and more tactical ones in order to achieve these goals – reacting to market conditions and changes to savings targets within the YBS Plan. So far, we’ve been successful in achieving these goals but we know that we can always improve and competitors are always looking to do the same. Our savings book is growing and is now over £31bn (the agency network looks after over £4.5bn of this), giving us around 2% of the UK savings market. This may not sound like much, but that means we’re helping improve the financial wellbeing of nearly 2 million customers every day”!
“Over the years of growth, we’ve managed to pay more than the market average – in the first quarter of 2020 we paid an average of 0.30% more than the rest of the market… over a year that would equate to around £90m in extra interest.
Now the team is structured as we need, we’ve got our guiding principles, and we’ve got a strong set of products, where next? This is where the Proposition team comes into its own. The team’s here to keep one eye on the future, helping YBS navigate from our current proposition, to one that will meet the needs of both current and future customers. This is a huge topic in itself, and if Dave will let me 😊, I’ll share more of with you in the as things progress, and share some examples of what is being worked on behind the scenes…exciting stuff!”
I will of course give Tina a further opportunity to update you in future digests😊.
Thanks to those of you who responded to the request from your DM to the query I posed in last month’s digest – i.e. that transactions were not far from normal but new account openings were low in comparison to pre Covid levels.
Your feedback can be split into 4 main themes – and I have responded to each below:
- Competition from NS&I – whilst it has not been possible for us to match their rates recently, they do not offer a face to face service, and both their phone lines and website have been jammed meaning many customers were unable to take advantage of these rates. It has now been announced the rates are to be slashed in November. See here.
- Restricted Product Range – as Tina has hinted above, we are constantly reviewing our proposition, and the new team will be working to ensure we have a wide range of competitive products. By the time you read this we will have reintroduced the Annual Access Account (a new money product), at the time of writing it will be ‘best buy’, and we are planning to support this relaunch with press adverts to raise awareness.
- Online Competition (incl. YBS) – We have covered this in previous digests and blog content, and explained that F2F & online are 2 distinct markets, and we need to be competitive in both markets to support customer’s channel of choice and our growth ambitions. The vast majority of our savers have chosen a F2F service and it is that service in agencies and branches that will encourage them to continue to do so. Your DM shares the competitive position each week, and even though there is a differentiation of 0.26% between Access Saver Plus, and Internet Saver Plus, we are higher in the best buy tables for the ASP – as part of our commitment to have a competitive offering in this market.
The 4th theme was in relation to the ongoing Covid Impact – we have seen that customers, whilst happy to transact, are not yet returning to their normal behaviors from pre-Covid in relation to shopping around for rates and opening new accounts. The ever changing situation in relation to local lockdowns and changing government guidelines mean this may not change in the short term. All we can do is continue to offer this in our branches and agencies at a time when many others are not doing so.
The good news is that we do have an increased appetite for savings in Q4, so you will see us remaining at the right end of the best buy tables with our product range.
Mortgages
House Movers and FTBs continue to dominate an increasingly buoyant market, with these types of applications accounting for 81% of the market. HMRC have just confirmed that sales agreed rose 15.6% in August compared to July. Although slightly down on August last year, many experts believe numbers could start to be higher than the same periods last year before the end of 2020, as the market continues to recover from the early impact of Covid 19.
More on the mortgage market
Obviously no stamp duty up to £500,000 is the major driver for the purchase activity. Lenders do continue to “flirt” with higher LTV products while trying to balance risk and reward. You will have seen Accord go back into 90% lending recently but just for two days (which was intentional to manage demand and support service teams to cope).
From a Direct lending perspective, the decision to hold off re-entering 90% was the right one and recent decisions to try and reduce the level of business coming in (to support service levels) has worked and we are now seeing daily numbers where we want them to be.
The great news is that we have now had colleagues returning from the collections department, which is the shot in the arm we need to get us back in a really strong position to be able to cope with any commercial decisions that might come in regards to driving Direct. 85% products are already being allowed to naturally become more competitive to allow us to start to push volumes up again.
After an initial surge in agency referrals in July when the market opened up again, this has dropped off in August & September. We are looking to roll out some back to basic mortgage referral training for agency colleagues in Q4.
Network Updates
I wrote earlier in the year that the Covid situation had caused us to ‘pause’ our plans to complete a number of branch to agency conversions in 2020. However, we have now been able to get those plans back on track, and I am pleased to announce that earlier this month we completed our first branch to agency conversion of the year, when Sunderland branch became our 105th agency. I’d like to welcome Andrew Craig who is a new YBS proprietor. There are plans for 2 more this year, and a number of others planned in the first half of 2021.
More Network Updates & News
Last month I wrote that we are launching some online training for your colleagues. Thanks to a large number of you who took us up on our invite to join us this week for one of the launch events which will help you to embed and sustain this training over the coming months. This training, devised by Mary Gober International, is the biggest ever investment in colleague development that YBS has made.
Because we see our Agencies as an integral part of how we operate, I felt it important that we invest in your business too, to build the long term advocacy and loyalty of our customers. I hope you enjoy/enjoyed the launch event and are looking forward to leading this out for your team. For those of you who were unable to join a launch event, please speak to your DM to see if there is still a chance, or if not then how you can still support the roll out of this training to ensure your colleagues (and customers) don’t miss out.
Monthly Risk Checks
As I’m sure you are aware, the completion of monthly risk checks in your agency are one of 3 factors (along with completion of T&C & Mandatory Learning) that contribute towards your bonus commission each month. This involves checking samples from the previous month, and the deadline for the completed checks to be sent to Business Support is the 26th of each month – meaning from the 1st of each month when these can be started, there are over 3 working weeks each month for them to be completed. Despite this, every month my team and I have to send reminders and then chase numerous set of checks that have either not been submitted at all, or have been submitted incorrectly i.e. wrong form, no date, no names, incomplete sections, sent to the wrong place etc. If this happens, Business Support point out the omissions and ask for amendments to be made. I should say that this doesn’t apply to all agencies, so thanks to those who submit them correctly and in good time each month.
Rather than strictly deducting commission for late submissions in adherence to the agency agreement, I have been lenient on this due to the fact that they were ‘new’ and allowed for the circumstances we have been dealing with in 2020. However, my team have recently completed an exercise to ensure there are at least 2 colleagues in each agency trained (by the DM) to complete these checks, and this, along with the fact that these checks have been in place nearly 18 months, means that I feel agencies should have a routine in place to ensure completion without the need for regular chasing.
As of next month, we will no longer chase throughout the month. If any checks are still outstanding at the end of 26th, you will be sent an e-mail to both yourself and the agency inbox which will allow 48 hours for the checks to be correctly submitted. Failure to submit these will result in your bonus payment being stopped for that month.
This is still an ‘extra buffer’ beyond the deadline that we are offering for just a short period, and we will monitor who has used it, so please don’t wait for this final reminder.
IT update
WAN Upgrade - As of Friday 18th September:
- 87 Agencies out of 104 (84%) – 17 Agencies left.
We will still need engineer access to the final 17 Agencies, and some of the 87 Agencies still only have one circuit installed, so we will also require access to get the final circuit up and running.
As explained in my message on 7th September, the next step will be the server replacement, to be carried out between the end of October & early January. The dates have now changed and this will not begin until late November. This is why I have not sent the schedule yet as promised, but I will send as soon as I have it, so you will have plenty of notice.
Finally
Here’s a Community Update from Naomi Hockney, our Community Engagement Manager:
“We’re pleased to inform you that from September onwards our cause collection initiative can resume. We know our colleagues have been seeking to support their communities in ways that also keep our members safe, that’s why the Community team have been working with health and safety to ensure we have the right processes in place. The updated process is outlined below and also posted on the Community Hub cause collection page here – remember to log in before clicking any Community Hub link listed.
More community updates
Did you know that each quarter the YBS Charitable Foundation is oversubscribed with nominations and as such must prioritise nominations that closely meet criteria and are representative of the breadth of our reach across the nation? As we head towards our next quarterly deadline (30th September) here are some helpful reminders about how to make the most out of your nomination:
- Read criteria on the Community Hub here.
- Get in touch with the local charity and explain the criteria.
- Ask for a detailed budget breakdown for all the elements that make up the amount you are applying for plus evidence of costs if possible.
- Use this to complete the eligibility quiz and Community Hub nomination.
As colleagues our focus should be on growing the SCBD uptake rate to ensure the continued viability of the Charitable Foundation. We should then seek to nominate local charities who meet criteria and we can grow a relationship with, through other community programmes (e.g. cause collections), to develop our social and community impact beyond a single donation. We should also spend time signposting members on how they can make their own nominations. All the best in your nominations!”
Events – Digital fraud & online events
In the next few weeks, we’re going digital with our events.
As you know, we’re unable to hold face to face events right now, but we still want to make sure members are getting the support they need during this difficult time.
So, the marketing team have created some pre-recorded video content featuring colleagues.
Two new videos have been created, and they are about:
- Fighting fraud
- How to stay safe online
Fighting fraud
The increased use of technology in financial services has created opportunities for new and different types of fraud.
The video highlights types of criminal activity our customers should be aware of, like email and phone scams. It also explains what they can do to reduce their risk of becoming a victim of identity theft and fraud, like never providing PIN numbers over the phone.
How to stay safe online
The world, and the way we do lots of things is changing very rapidly. The way we listen to music, read books, shop, bank, are now done much more often online. There are lots of advantages to using digital channels – it’s quicker, cleaner, and more convenient. But there are also risks – like being targeted by criminals.
This video discusses the scale of the problem, why it’s ok to be worried, and what customers can do to protect themselves online with 7 simple steps – like having an unpredictable password and keeping up to date with the latest software.
The video content will be hosted on YouTube and will be accessible through our website and Facebook posts.
Growth Series content
Additional Support & Guidance: Training & Competency Scheme
Last month, we talked about additional activities that you could use alongside the current T & C scheme, and we said that a Guide would be coming soon.
This month, we bring you the Training & Competency Guide, which is now a working document for you to use.
The Guide includes lots of useful additional resources, including coaching videos, key questions for account openings, and scenario support.
You can find it here
We’d love to hear your views
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