GREENWICH, U.K.—Experts on banking from the University of Greenwich are providing assistance to London Mutual Credit Union as it prepares to begin offering longer-term loans, including mortgages. The university reported it has formed a Knowledge Transfer Partnership (KTP) with the credit union to help it develop the required expertise to undertake complex risk-assessment, manage housing finance and compliance. London Mutual will need regulatory approval before it can proceed.
"The London Mutual Credit Union has the potential to widen its range of ethical and reasonably-priced services, and to help more people buy their own homes,” said Dr. Sallyanne Decker, principal Lecturer in Banking at the University of Greenwich’s Business School. “But first it has to transform its capability to meet higher regulations – that's where we can help."
The credit union’s CEO, Lakshman Chandrasekera, said the offerings will allow it to expand credit to lower-income people who may not have other loan options. The mortgages would allow many members to purchase homes that are currently owned by local government councils.