Customers owning a stake of the Co-operative Bank is ‘viable’

Four out of five Co-operative Bank customers would join a proposed ‘customer union’, according to new research. The union, proposed by the Save Our Bank campaign, would work to keep...

Four out of five Co-operative Bank customers would join a proposed ‘customer union’, according to new research. The union, proposed by the Save Our Bank campaign, would work to keep the bank ethical and bring it back into co-operative ownership.

Almost 1,500 Co-op Bank customers have completed an online survey designed to test the idea. Some 80% said they would join the Union of Co-op Bank Customers, a democratically organised group which would work with investors and employee unions.

Save Our Bank has now entered an alliance with Unite the Union, which represents the majority of bank staff and supports its aims. Shaun Fensom of Save Our Bank said: “Indications are that a customers union would be viable.

“We’re suggesting people pay between £6 and £12 per year. It wouldn’t be an investment, it would be more like paying your dues. We’ve also been asking for donations. We’ll do a proper fundraising exercise and draw up a plan for an organisation that’s sustainable and viable and that will be able to continue the campaign.”

As part of the project, Save Our Bank proposes a mutual fund which will buy a stake in the bank. It admits gaining a majority stake would be difficult, but says a minority stake could have significant influence, particularly if it could work with other investors including the Co-operative Group, which remains the bank’s largest single shareholder.

Shaun Fensom commented: “The combination of an organised group of customers, a growing co-operative ownership stake and an alliance with organised employees would have the power to ensure that the Co-op Bank remains the UK’s leading ethical bank, not just in its investment policies, but also in how it treats staff and customers.”

The Save Our Bank campaign launched in October 2013 after it emerged that private investors would take a majority stake in the Co-op Bank. More than 10,000 customers are now signed up as supporters. Next the campaign will take legal advice on the best way to set up both the union and the fund, both of which are envisaged as co-ops.

“We need to turn Save Our Bank into something more permanent,” added Mr Fensom. “A body that can represent customers, keeping a close watch on the bank and bringing pressure on it to change if necessary. It would become a union for co-op bank customers.”

The campaign is asking Co-op Bank customers and supporters to help by completing the survey or by making a donation.

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