Follow this topicFollow this topic Knowledge » The economy

Bank of Dave: what happened next?

Simon Ward
by Lovemoney Staff Simon Ward on 23 December 2012  |  Comments 8 comments

This summer, Channel 4 documented Dave Fishwick's struggle to lend money to his local community. This is what has happened since then.

Bank of Dave: what happened next?

In a year dominated by banking scandals, from rate rigging to bonuses, Dave Fishwick emerged as a breath of fresh air.

As the owner of a large minibus sales business, he had seen first hand the effect of the credit crunch. “I have a lot of very good customers who I've known for a long time. Once the credit crunch hit in 2008, these people couldn't get a loan from the banks they had been with for years and therefore couldn't afford to get a new minibus. That threatened to be a very big problem for my business,” he told the Guardian.

His struggle to set up Burnley Savings and Loans, to be able to lend money to those customers and others in the local community, was documented in the hugely entertaining and much acclaimed Channel 4 series Bank of Dave. But what happened when the cameras stopped filming?

Licensing issues

Well, one thing that hasn’t changed is that Dave is still not running a bank, in the traditional sense of the word anyway. Burnley Savings and Loans does have a Consumer Credit Licence, but hasn’t obtained a banking licence. So you can use the name “Bank on Dave”, if you prefer, but the quotation marks must be used at all times.

However, the success of the TV series has led to a two-year waiting list for people wanting to lend money (the savings side). Burnley Savings and Loans operates a peer-to-peer lending model, similar to that pioneered online by the likes of Zopa, but with one crucial difference: all the paperwork is done face-to-face in the company’s office.

And with returns of 5% AER for lenders, way above the top-paying easy access savings accounts and even the best five-year fixed rate bonds, it’s no surprise people are queuing up to lend. However, the fact it isn't regulated by the Financial Services Authority means any money lent isn't covered by the Financial Services Compensation Scheme.

Any profits the company makes over and above its overheads are donated to charity.

Back on the box

Dave says he’s looking at potentially opening another “bank” in Birmingham. And he’s floated the idea of housing it in the former home of the Municipal Bank, which was established to help the city get back on its feet following the First World War.

A second series of Bank of Dave is currently being filmed for broadcast next year, and it’ll be great to have the ebullient Mr Fishwick back on our TV screens.

These quotes from an interview with his local newspaper, the Burnley Express, underline his passion for what he’s doing “There are thousands of towns and villages up and down the country – you could have a Bank of Dave, a Bank of Phil or a Bank of Simon in every one,” he said.

“If you have 1,000 towns and start lending out to 1,000 businesses in each one suddenly you have rescued a million businesses. If we can just stand together arm in arm we can take on the world.”

I think we might need a few more Daves in 2013.

More top stories from 2012

Four thoughts about the Libor scandal

The real result of PPI mis-selling

Government U-turns on VAT on pasties and static caravans

Child Benefit changes: what you need to know

Enjoyed this? Show it some love

Twitter
General

Comments (8)

  • Mike10613
    Love rating 626
    Mike10613 said

    'Bank of Dave' is a stupid title that won't inspire confidence in savers and investors. The idea is good, but confidence is important; he should drop it and get serious.

    Has this font got smaller or are my eyes on the blink? Why do I have to log in every time I want to comment? It's not the end of the world (that was the other day), but if it ain't broke; don't fix it... If you want to throw money at something, throw it at some decent writers who can write about something more interesting than how our arithmetic needs improving...

    Report on 23 December 2012  |  Love thisLove  0 loves
  • marram
    Love rating 49
    marram said

    Like Mike10613 I find it very irritating to have to sign in when I want to make a comment. Why? Change it back, please. Otherwise I suspect there will be far less comments and quite honestly I can't be bothered, chances are I'll just delete all your emails and forget lovemoney.com. I probably wouldn't be the only one.

    Report on 23 December 2012  |  Love thisLove  0 loves
  • MK22
    Love rating 169
    MK22 said

    Not sure where mike10613 and marram have been, but I've ALWAYS had to log in to post a comment here.....

    Report on 23 December 2012  |  Love thisLove  0 loves
  • easygoing
    Love rating 170
    easygoing said

    MK22 I think you are probably in the minority. I never had to log in each time I viewed an item until the site was 'improved'. Like marram, I am beginning to feel that it isn't worth the hassle, particularly when on occasion the site refuses to recognise me.

    Time to sort yourselves out ladies and gentlemen.

    As for calling it 'The Bank of Dave' I don't have a problem as it sounds much more approachable. I am sure Mr Barclay and Mr Lloyd once headed a bank sometime. If someone can bring a bit of sense to the tired old mess we are in then he is to be congratulated. After all even Germany relies on small local banks for its business.

    Report on 23 December 2012  |  Love thisLove  0 loves
  • tuttogallo
    Love rating 99
    tuttogallo said

    What Dave Fishwick is actually doing. Is what banks and building societies used to do before the whole banking scene got debauched and corrupted.

    Halifax, Bradford and Bingley etc were set up to take in loans and lend those funds to deserving borrowers (who were dealt with face to face). This was all swept away in the drive to get rich (those good solid burghers are no doubt spinning in their graves as they contemplate the prostitution of the ideals and principals of the institutions which they worked so hard to set up).

    Down with investment banking, leveraged buy outs, banksters' bonuses, financial engineering, demutualisation, revolving wholesale credit and all the other discredited weapons of financial mass destruction which we have been forced to endure and up with good honest old fashioned face to face banking.

    Long live Dave Fishwick. May he prosper mightily.

    Report on 23 December 2012  |  Love thisLove  0 loves
  • culluding-fool
    Love rating 60
    culluding-fool said

    It would be nice to have a 'Bank of Dave' type setup near to where I live. I know a few people willing to try it out. My parents have tried the local credit union but found it very difficult to get their money in and out due to them keep changing their location and not notifying customers. They were even trading in a pub for while!

    As for the logging in problem, I have not been able to log into Lovemoney for a couple of weeks now. I have not been able to find any way of contacting Lovemoney by email or web form. Where is that hidden? I also tried replying to emails but didn't receive any response. I was actually putting together a letter to send off by snail mail when I've just managed to log in now! Admittedly I didn't try very hard before as I expected to enter my username and password then gain access but I instead received some sort of XSS error and got returned to the web page without being signed in. Certainly not an improvement on the older site. I thought these things are supposed to be fully tested before being put online. At the very least, a feedback form of sorts should be available.

    Report on 23 December 2012  |  Love thisLove  0 loves
  • yocoxy
    Love rating 152
    yocoxy said

    What Dave is doing is calling for less banking regulation. He didn't like the fact that he had to show he had assets to compensate customers.

    Excellent new plan.

    Report on 11 January 2013  |  Love thisLove  0 loves
  • babyhk
    Love rating 10
    babyhk said

    It looks like if you live more than 20 miles away from Burnley then by the time you have paid transport costs Dave is a no no.

    Would Dave be wise to open his own website?

    How can he aim to grow with little marketing and info?

    Report on 30 January 2013  |  Love thisLove  0 loves

Post a comment

Sign in or register to post a reply.

Our top deals

Credit card
company
Balance transfers rate and period Representative
APR
Apply
now

Barclaycard 31Mth Platinum Visa

0% for 31 months (2.99% fee) Representative 18.9% APR (variable) Apply
Representative example: Assumed borrowing of £1,200 for 1 year, at a Purchase Rate of 18.9% (variable), representative 18.9% APR (variable). Credit available subject to status. A Balance Transfer fee of 3.5% will be applied, then reduced to 2.99% by a refund (terms and conditions apply). Plus an additional £20 fee refund on balance transfers over £2000.

Barclaycard 30Mth Platinum Visa

0% for 30 months (2.89% fee) Representative 18.9% APR (variable) Apply
Representative example: Assumed borrowing of £1,200 for 1 year, at a Purchase Rate of 18.9% (variable), representative 18.9% APR (variable). Credit available subject to status. A Balance Transfer fee of 3.5% will be applied, then reduced to 2.89% by a refund (terms and conditions apply). Plus an additional £20 fee refund on balance transfers over £2000.

MBNA 30Mth Platinum Credit Card Visa

0% for 30 months (2.89% fee) Representative 18.9% APR (variable) Apply
Representative example: Assumed borrowing of £1,200 for 1 year, at a Purchase Rate of 18.9% (variable), representative 18.9% APR (variable). Credit available subject to status.
W3C  Thank you for using One Flew Over the Cuckoo's Nest