Northern Community Bank: Strengthening co‑operative governance to innovate and better serve account holders
Case study
When co‑operative Northern Community Bank embarked upon one of its biggest changes in its 44‑year history, it recognised that strong governance is essential to underpin successful evolution and sustainability.
Founded in 1982 as Nelson Community Credit Union with just 15 local savers contributing a combined £75, Northern Community Bank now serves 17,500+ account holders across Lancashire, Preston, Lancaster and Cumbria with more than £20 million in savings.
Offering a range of savings, affordable loans and financial education, the organisation is a co-operative, so everyone who opens an account becomes a part owner. Its profits are reinvested into better services or returned to account holders rather than paid to external shareholders.
“We exist to serve people, not external shareholders,” said Chief Marketing Officer David Harris. “Every decision we make is for our account holders or community. In March 2026, we proudly shared £1.1 million of profits with our account holders in dividend and loan interest rebates.”
In recent years, Northern Community Bank has rebranded to reflect the communities it now serves. It has opened a new £2.5 million headquarters with a purpose‑built training suite for the use of other credit unions and community organisations – putting the co‑operative principle of co‑operation among co‑operatives into daily practice.
And it has transformed the way it communicates with account holders. “We took the decision to step away from language that could be a barrier,” said David.
“Sometimes ‘membership’ and ‘credit union’ can be confusing and we wanted to make things clear and simple. We’re still a credit union but use ‘community bank’ in our name and refer to our members as ‘account holders.’ When someone opens an account, that’s when we explain the benefits of membership.”
These changes complemented the Financial Conduct Authority’s Consumer Duty regulations introduced in July 2023. This requires UK financial firms to put customer needs first. Northern Community Bank used it as an opportunity to go above and beyond basic compliance to improve every aspect of the account holder experience.
“We decided not to treat Consumer Duty as a tick-box exercise,” says Chief Compliance Officer Magdalena Niemczyk. “It made complete sense for us because it’s what being a co-operative is about. We wanted to live and breathe it.”
The team reviewed every product and process through the eyes of their account holders, asking whether each one delivered good outcomes. Magdalena also went to work on radically improving the organisation’s governance. “Our processes, policies and documentation needed strengthening and making more robust,” she said.
“So I spent considerable time creating a new framework, but I wanted someone independent to look at everything and give an expert appraisal of the structures I’d put in place.
“And whilst we have great directors, some had never sat on a board before. There were also knowledge gaps in those who bring different skills from sectors that aren’t financial services or co-operatives.”
So Magdalena turned to Co-operatives UK for specialist governance support. One of the advantages of Northern Community Bank being a Co‑operatives UK member is that they are eligible for member rates on all advice services and products, which is a discount of up to 25%. So they opted for a Governance Audit and co‑operative director training – both provided by Governance Advisor Dane Pollard.
Governance audit
Dane carried out a thorough review of governance processes and procedures – and drew up a comprehensive report detailing his findings, with a number of recommendations covering succession planning, board skills and improving governance processes.
“The governance audit helped us understand where we’re strong and where we needed to develop,” Magdalena said. But it wasn’t just recommendations. Co‑operatives UK supplied templates, process flows, AGM mandates and practical tools.
“This meant we could begin implementing those recommendations immediately and get to work strengthening our governance. That made a huge difference.”
With further training and more implementation still to come, the results are visible already. “I can see improvements in how the board communicates, conducts meetings and records decisions,” said Magdalena. “More importantly, the board is taking ownership of governance – and that’s the cultural change we wanted.”
Bespoke director training
This cultural change was catalysed by both the Governance Audit and the bespoke director training Dane delivered.
“The training is specifically for co‑operatives, and that’s where the real value is. It’s helped with making sure we’re operating in line with the co‑operative principles,” Magdalena said.
“For our directors unfamiliar with co‑operatives, it was a brilliant introduction to co‑op principles and how the co‑op structure works. It also explained what’s expected from a director and how they should behave, which was extremely valuable for those taking the role for the first time.
“It’s good for someone from outside the organisation to present a bigger picture and provide real life examples. Dane also gave us best practice and showed what didn’t work in other co‑ops.”
Northern Community Bank is now planning further training for its directors as a result of the Governance Audit’s recommendations. “Our board absolutely love working with Dane,” said Magdalena.” They see him as an expert, and they specifically asked for him for our next training day because he understands our organisation and how we operate.”
For Magdalena, good governance is an essential foundation for the kind of organisational change that’s enabled Northern Community Bank to innovate to better serve its account holders. “Without good governance, you wouldn’t be able to do all these things,” she said.
“The voluntary board of directors and leadership team adhere to their robust governance framework, values and guiding principles prior to making important strategic decisions.
“We’ve got a young leadership team with lots of ideas. Strong governance gives the board the confidence to support those ideas while making sure everything we do remains focused on delivering the best possible outcomes for our account holders.”
Find out more
Support for your co‑operative
Governance Audit
Training for co-operatives
Board Effectiveness Review
