Unity Trust Bank plc provides specialist banking services to trade unions, charities and other organisations that operate in the not-for-profit sector in the United Kingdom and, since December 2015, its remit has expanded to include profit-with-purpose businesses. Founded in 1984; head office is located at Four Brindleyplace, Birmingham.
History
Originally a licensed deposit taking institution, Unity Trust Limited acquired full status as a bank in 1987.
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Ownership
Historically, Unity Trust Bank was majority owned by individual trade unions and federations (73.23%) and
The Co-operative Bank
The Co-operative Bank plc is a retail and commercial bank in the United Kingdom, with its headquarters in Balloon Street, Manchester.
The Co-operative Bank is the only UK high street bank with a customer-led Ethical Policy which is incorporat ...
owned the remainder (26.7%) through its subsidiary, Co-operative Commercial Limited.
In December 2015, Unity bought back shares from Co-operative Commercial Limited, which reduced The Co-operative Bank's holding to 6.7%.
Unity Trust's new articles of association redesignated all shares into a single class, all ranking ''pari passu'', and removed the different rights of the old classes and created additional shares. As a result, new shareholders have invested in Unity Trust and the Co-operative Bank no longer has a controlling interest or the right to appoint directors.
The Co-operative Bank's stake was put up for sale in early 2014 in an attempt to restore profitability following a capital shortfall, which resulted in a rescue by its bond holders – led by US hedge funds – and the parent
Co-operative Group
Co-operative Group Limited, trading as Co-op, is a British consumer cooperative, consumer co-operative with a group of retail businesses including food retail, wholesale, e-pharmacy, insurance and legal services, and funeral care.
The Co-op ...
ceding control.
Activities
In its founding principles, the bank was established as “an organisation identified with and embracing the philosophy of the common good.” It promotes a socially responsible and sustainable approach to banking and lending. Unity Trust Bank was rated top in eight out of nine customer satisfaction categories in the Charity Finance Banking Survey 2015. In 2013, it became the first British bank to be awarded the
Living Wage
A living wage is defined as the minimum income necessary for a worker to meet their basic needs. This is not the same as a subsistence wage, which refers to a biological minimum, or a solidarity wage, which refers to a minimum wage tracking labor ...
Employer Accreditation Mark.
The Co-operative Bank acted as the bank's clearing agent until 2015, when it migrated to a
NatWest
National Westminster Bank, commonly known as NatWest, is a major retail and commercial bank in the United Kingdom based in London, England. It was established in 1968 by the merger of National Provincial Bank and Westminster Bank. In 2000, it ...
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See also
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Trade unions in the United Kingdom
Trade unions in the United Kingdom were first decriminalised under the recommendation of a Royal commission in 1867, which agreed that the establishment of the organisations was to the advantage of both employers and employees. Legalised in 1 ...
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Credit unions in the United Kingdom
Credit unions in the United Kingdom were first established in the 1960s. Credit unions are member-owned financial cooperatives operated for the purpose of promoting thrift, providing credit and other financial services to their members.
Credit un ...
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Social economy
The social economy is formed by a rich diversity of enterprises and organisations, such as cooperatives, mutuals, associations, foundations, social enterprises and paritarian institutions, sharing common values and features:
* Primacy of the i ...
References
External links
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Trades Union Congress
{{Commercial and retail banks in the United Kingdom
Banks of the United Kingdom
Banks established in 1984
Companies based in Birmingham, West Midlands
Labour movement in the United Kingdom
Social enterprises
Global Alliance for Banking on Values