Our Savings Business provides investment and savings products that allow people to plan for the future and for retirement. Saving isn’t always easy. We have a range of community projects to help people take the first steps to save for their future. As the economic climate continues to challenge all of us financially, more and more consumers are aware of the need to save – while having more calls on their income than ever. As a financial services company, we believe it is part of our role to support a cross-generational savings culture and to help people at the fringes of our traditional marketplace. Our products are aimed at people who regularly save. But we also need to understand the attitudes of the next generation and guide them into adopting a prudent attitude to savings.
WORKING WITH WEST SUSSEX AND SURREY SAVE CREDIT UNIONS
Following our four year commitment to provide marketing support to certain Credit Unions, we have seen more success within these organisations in attracting savers and advancing loans. Our initial work with the East Sussex Credit Union and West Sussex Credit Union has now extended to Surrey save who have, in their first year of trading, attracted 409 savers and provided loans to 55 people. We provide direct support on the development of their marketing materials. In return, we have learned more about the issues and challenges of encouraging people to start saving.
Our work together has been shortlisted for the Financial Services Forum Awards for marketing effectiveness in 2013 and recent discussions show a real parallel between the issues faced by our customers and those customers walking into a credit union.
WORKING WITH CHARITIES AID FOUNDATION (CAF) AND NESTA
In 2012, we secured a joint venture with CAF Bank and the charity NESTA to provide much needed loans, mentoring and consultancy for the social enterprise sector in Brighton and Hove. We are providing interest-free loans, where an independent community board decides which organisations within their community receive funding.
This has provided us with valuable insight into the way that we can provide alternative sources of finance to small businesses.
Our plan in 2013 is to expand this to more cities to highlight this important part of the economy.
WORKING WITH MAGNIFIED LEARNING
Throughout 2012 we have developed our ‘Money, Money, Money’ Programme into a movement providing practical financial education that has reached over 5,800 young people in 18 schools and involved over 300 Legal & General employees over the last three years.
We have learnt a lot along the way, which has big implications for the way we run our business. In 2012, our research showed that 71% of young people expected to buy financial products face to face and that cars, university and holidays would be the top areas of spend if 14 to 16 year-olds were given £10,000.
We also created the ‘Step up for Success’ (SUFS) programme providing 60 young people who were predicted borderline grades C-E for GCSE with an intensive work placement programme, a level 2 GCSE Young Consultant qualification and a FTSE 100 company reference. In exchange, we gained valuable insight into the ways in which Legal & General can attract a younger consumer through the effective use of social media.
This programme achieved great outcomes against the national benchmarks for work placements:
- All of SUFS students (100%) said that “The work I undertook was meaningful” versus the national benchmark of 58% on work placements.
- Of the SUFS students that took part, 98% agreed that “I was given some responsibility during my placement” against a national benchmark of 68%.