FINANCE
“ Instead of pulling up the drawbridge , the board backed further investment , to make the business fit for the future .”
remarkably healthy despite four main factors : the housing market effectively closing during the first lockdown , two Base Rate reductions by the Bank of England , increased costs due to investment in staff and technology and additional funds being set aside to cover increased bad debt provisions resulting from the pandemic .
“ It ’ s been the hardest year I ’ ve ever known , and I couldn ’ t be prouder of the staff – it ’ s been humbling ,” says Andrew . “ As we were going into the first lockdown , there was a lot of anxiety , and the board ’ s priority was to alleviate those fears .”
The first decision was to remain open for business without using the government ’ s furlough scheme . “ We are a resilient organisation , with strong reserves , and it wouldn ’ t have been right to take advantage of taxpayers ’ money ,” says Andrew .
That positive message was relayed to staff , along with the assurances about job security and pay , while preparations were quickly made to equip 95 per cent of the staff to work from home , screens were installed in branches and personal protection equipment supplied . “ Acts of kindness ” were also introduced , such as employees being sent thank you gifts . Staff were also regularly brought together for online social events , and initiatives to support mental health were put in place .
The caring approach was recognised when the society was awarded an “ outstanding ” two-star rating by Best Companies , based on a survey of employees .
Remarkably , despite the prolonged economic uncertainty , the society also continued to invest in the future , recruiting additional staff , including eight apprentices , and supplying teams with improved technology .
“ Instead of pulling up the drawbridge , the board backed further investment , to make the business fit for the future ,” says Andrew .
He recalls being moved by an unsolicited email from a young member of staff , who had joined the society after being made redundant from a previous job . It concluded : “ I would like to say a big thank you for putting our health and livelihoods first … and thank you for helping me to get back on my feet .”
Meanwhile , the society ’ s support for the community was stepped up , with staff volunteering in a range of ways , including acting as marshals at Covid-19 vaccination centres and as Age UK befrienders .
Andrew Craddock ( right ) with members of Darlington Building Society ’ s Northallerton office .
Sixteen community organisations shared over £ 77,000 from the five per cent pledge . On Teesside , the grants included nearly £ 15,000 to the Daisy Chain Project , to pay for a large polytunnel to enable autistic people to grow their own produce . Another example of the difference being made on Teesside was a £ 4,550 donation that enabled Teesside Hospice to buy a new bladder scanner .
“ We are not just here to make a profit ,” says Andrew . “ We remain committed to being part of the fabric of our communities .”
Inevitably , there are concerns about the economy , the dependency on the success of the vaccination programme , and the need for continued government support , but he remains confident the society will carry on the good work in 2021 .
The benefits of investing in technology will be seen by members in the next few months , including a more efficient telephone system , an updated brokers ’ platform and a new payment system to make it easier for customers .
Northallerton was the latest branch to be refurbished , last year , and Redcar branch will relocate to a more prominent , central location in the spring , followed by Bishop Auckland branch moving to a higher profile site in the autumn . Both will have disabled access . With the latest refurbishments due to take place at Darlington , Stockton and Middlesbrough , all nine branches will have been given a fresh new look by the end of the year , before the search begins for new branch locations in 2022 .
“ Thanks to a tremendous team effort , we ’ re in a really strong position , with ambitious plans to provide an even better service for members , look after our staff and support our communities – and that makes me incredibly proud ,” says Andrew .
There ’ s no hiding from the fact that 2021 will bring further challenges but , 165 years after it was founded , Darlington Building Society remains passionate about making a difference .
You can bank on that .
Members have been sent Darlington Building Society ’ s Members ’ Review for 2020 including a Summary Financial Statement , and are being urged to take their opportunity to vote online or via post before the virtual AGM on April 26 .
The voice of business in the Tees region | 73