Responsible Finance, the organisation representing the UK’s growing ethical and affordable finance industry, has appointed Paul Kalinauckas as its new Chair.
Kalinauckas, 64, is Chief Executive of Wolverhampton-based BCRS Business Loans, a responsible finance provider which he co-founded in 2002 after a career leading and launching a number of businesses.
Responsible Finance providers, also known as community development financial institutions, lend to financially excluded individuals and to viable businesses and social enterprises turned down by mainstream banks.
The sector as a whole lent £254 million to 52,121 customers in 2018, an 8% increase on the £235m lent in 2017.
“I’m delighted to take up the challenge of this role,” commented Paul Kalinauckas.
“This is a critical turning point for responsible finance as an industry. We know community development finance works, and our sector has been successfully lending to otherwise-excluded businesses, individuals and social enterprises, at affordable rates, for over 20 years.
“There is widespread demand for more responsible finance than our members can provide – and even for more providers in our sector. Over the last two decades our members have built the infrastructure to serve their markets, creating jobs, resilience and opportunities in communities across the UK, including many of the most deprived.
“Our biggest overall challenge is access to affordable capital to lend on and to meet demand.
“Responsible Finance itself is the vital link between a network of specialist finance institutions, embedded in their local communities, and policy-makers and strategists.
“It is a vibrant body with a strong network of members, and is the leading source of information and learning about the provision and impact of ethical and affordable finance.
“20 years of evidence shows that responsible finance works. Our sector is entrepreneurial, innovative and ambitious to grow and continues to pursue a range of sources of capital investment, including through Government.
“I also intend to ensure we maintain European microfinance links despite Brexit, and maximise the benefit of all those links. There’s much to learn and much to share. The EU is doubling its provision for microfinance in the coming year – they have recognised the value in reaching customers other providers do not.”
Kalinauckas will continue in his role as CEO of BCRS. He is also a board member of The Microfinance Centre and a former national executive committee member of the Co-operative Party.
In 2018 Responsible finance providers:• lent a total of £254 million to 52121 customers in 2018, an 8% increase on the £235m lent in 2017.
• The providers lent £85 million to 5310 businesses, creating 4490 new businesses and creating or saving 10370 jobs. This was a 27% increase on the £67m lent to UK businesses in 2017.
• £138 million was lent to 475 social enterprises – 112 more social enterprises than in 2017 – creating and saving 4060 further jobs.
• £26 million was lent in 45900 loans to individuals (£4m more than in 2017). 23230 of those taking out loans from a responsible finance personal lender had previously borrowed from a high cost lender.
• £5 million was lent to 430 homeowners, bringing homes up to a decent standard and enabling 220 customers to stay in their own homes.
