How a church hall credit union became one of the area's biggest community banking success stories

Standing inside Northern Community Bank's impressive new home in Burnley town centre, it's hard to imagine it once operated from a church hall with no telephone, no internet and no permanent home.

Today, it looks after more than £21m, of account holders' savings, serves communities stretching across Lancashire and Cumbria and has become one of the region's biggest community banking success stories.

Few people have witnessed that transformation more closely than chief executive Kathryn Fogg. Having joined the organisation in 1999, the move into the purpose-built premises marks another landmark in a journey that has exceeded anything she could have imagined.

"Absolutely not," she said when asked whether she ever envisaged the not-for-profit financial cooperative operating from a building like this. "I can't believe the journey we've been through. From where we started to where we are now, it really is incredible."

The branch welcomed its first account holders last month before being officially opened on Friday. Burnley Council chief executive Lukman Patel, Burnley Council leader Afrasiab Anwar and Burnley MP Oliver Ryan were among the invited guests given a tour of the building before speeches marking the occasion and reflecting on Northern Community Bank's growth over the past four decades.

For Kathryn, the occasion was another reminder of just how far Northern Community Bank has come.

Northern Community Bank traces its roots back to 1982, when Nelson Community Credit Union was established by Lou and Mary Gildea with the support of the parish priest at St John's Southworth Church. Just 15 savers contributed a combined £75 to get the credit union started.

For the first 15 years it operated entirely through volunteers, with the church providing a free base as the fledgling community bank gradually found its feet.

"I started with the credit union in 1998 1999," Kathryn said. "We started in very humble beginnings in St John's Southworth Church. Our account holders mainly came from the congregation of the church, but we wanted to offer our products and services to everybody in the community. One of my tasks was to help develop the credit union and make sure we reached more people."

That ambition has driven its growth ever since.

Over the following decades it expanded across Pendle through mergers with neighbouring credit unions before growing into Burnley and, more recently, Cumbria. Along the way it became Pendle Credit Union, then Pennine Community Credit Union, before rebranding earlier this year as Northern Community Bank.

Today it serves more than 17,000 account holders across Lancashire and Cumbria through a combination of its two high street branches (the other branch is located in Colne) and digital banking.

The journey has brought far more than a change of name and new premises. Introducing paid staff after years of being volunteer-led helped drive further growth, while funding enabled the opening of its first permanent branch in Nelson, which was sold last year, in 2010. New savings products, affordable loans and digital services have followed, allowing Northern Community Bank to reach people from all walks of life.

"We've grown into more parts of the community," said Kathryn. "We've offered new products, we have more accessibility and obviously the biggest change is the branches and the digital online services that we offer now."

Despite all the changes over the past four decades, Kathryn believes Northern Community Bank has never lost sight of the principles it was founded on.

Last year alone, they shared more than £1.1m of profits with account holders through dividends, interest and loan rebates, while also donating £20,000 to charities and community organisations across the areas it serves.

Although around 80% transactions are now completed digitally, Kathryn believes there remains an important role for a welcoming community branch where people can speak to somebody face to face.

"I can understand why banks are closing. We don't have high street offices in all our communities and probably 80% of our transactions are done digitally now. But it is good to have a place where account holders can come if they want to.

"You need a lot of digital offerings, but you also need somewhere safe and welcoming where people know they can speak to somebody. Especially you need a lovely, comfortable, safe environment for your staff team to work, to give the best service that they can give to our account holders."

Looking around the new branch, Kathryn sees far more than modern offices and meeting rooms.

Behind every milestone, she says, is a story of volunteers, staff, account holders, the board of directors and communities working together to build something that has never lost sight of its original purpose.

"We started in humble surroundings and we've got this wonderful new building now," she said. "But inside, we've not changed. We're still the same ethical organisation. We're a financial cooperative. Our account holders are at our heart. They own Northern Community Bank. And everything we do is for them.

"We still have that same ethos of treating everybody with dignity and respect. And I'm very, very proud that our organisation still has those traditional values at the heart of it. I would encourage people to pop into the new branch and say hello to the team.”