Using data to understand personal

lending in Birmingham

Richard BrowneBirmingham City CouncilMarch 2015

1836The Birmingham and Midland Bank opens for business

2019HSBC moving UK retail HQ to Birmingham 1919

UK’s first Municipal Bank

Birmingham and Banking

Deprivation

22% live in the top 5% most deprived nationally(142K people)

40% population live in 10% most deprived nationally(430K people)

9th Birmingham is ranked 9th most deprived Local Authority in England out of 354

Prevalence of Birmingham’s deprivation

Deprivation and children

49% Nearly half of Birmingham under 18s live in the top 10% most deprived areas (LSOAs)

3%There are nearly 8,000 children living in the top 1% most deprived areas in the country in Birmingham

Deprivation is concentrated in the inner city and east of the city with pockets elsewhere

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Mainstreaming Community Economic Development –

Localise West Midlands

• LWM’s research concluded that higher levels of small business and local ownership lead to higher levels of economic success, job creation, social inclusion, civic engagement, wellbeing and local distinctiveness.

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300Education

CCJs

Income

CreditBenefits

Mental health

Support network

Stechford & Yardley North

Acock's Green

Stuuon Four Oaks

Resilience Factors

Identifying Financial Resilience

Debt Levels

Access to credit and finance

Data used to understand financial exclusion

Credit data from Experian Financial Vulnerability data from

Experian Repossession data Mortgage rates Income deprivation

But need view of bank lending

Lending Data

• 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

Data Disclosure across providers

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

Citysave Comparison

• Compared credit union loan data with the banking data

• Responsible correlation that there were lending in the same areas

Conclusions

• Locally geared financial services are useful in supporting local economic markets

• Data to understand lending is useful but limited• 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