Malcolm Hayday to step down as chief executive of Charity Bank
Malcolm Hayday, chief executive and one of the founders of ethical bank Charity Bank, has decided to step down from the post in 2012 to hand over the reins to a successor. Under Mr Hayday’s leadership, Charity Bank has grown from concept to launching as the world’s first general registered charity that is also an authorised bank.
This year Charity Bank celebrates its 10th anniversary, with the bank’s balance sheet at the end of 2011 exceeding £80m, an increase of almost 20% on the previous year, and many times the opening figure of £6.4m in 2002. It also expects to report a surplus of over £350,000. In its first 10 years under Mr Hayday’s leadership, Charity Bank has made more than 1,000 loans, reached a further 1,000 with business support and touched the lives of 3,500,000 people in communities across the UK.
Malcolm Hayday is one of the pioneers of social finance. He joined the Charities Aid Foundation (CAF) in 1993 to explore the possibility of loan finance as a new resource for the charity sector. In 1995 Mr Hayday started Investors in Society, a successful pilot loan fund, before overseeing its formal incorporation as Charity Bank in 2002. His work with CAF, followed by the successful launch of Charity Bank helped to pave the way for the growing number of social finance institutions in the UK and throughout the world.
“After 19 years of establishing and growing the Charity Bank model to the point of profitability, I believe now is the right time for me and the right time for Charity Bank, to hand over the reins to a successor who can take the bank to new heights, ” commented Mr Hayday. “I am extremely proud of Charity Bank’s achievements, as we have developed a unique banking model that responds to real social needs by financing charities and social enterprises. As I step down, Charity Bank is well-positioned for sustainable growth. I have no doubt that this is the most exciting and satisfying job in banking. I have agreed to stay on until the right successor is found.”
George Blunden, chairman of Charity Bank, commented; “Malcolm has secured his place in the history of social finance and we thank him for leaving us with a thriving organisation. His dogged determination to realise the vision of a bank from and for the charity sector has brought about change in the way charities are financed. That change is now gathering speed; the social finance sector has a key role to play as the economic outlook remains challenging. We wish Malcolm well as we begin our search for the leader who will take forward and build upon the strong foundations Malcolm has laid.”
Charity Bank will begin the recruitment process for a new chief executive with immediate effect. Interested parties should contact Robert Watsham at Odgers Berndston: robert.watsham@odgersberndtson.co.uk, 020 7529 111.
Malcolm Hayday FRSA: career milestones
1993: After 21 years in international banking and mezzanine finance, Malcolm Hayday joins Charities Aid Foundation (CAF) to explore whether a charitable investment market can be set up alongside grants and donations.
1995: Malcolm Hayday becomes director of Investors in Society, which is set up as a special trust within CAF as a pilot loan and guarantee fund, with £500,000 of funding from CAF.
1996: First loan to the Planning Exchange, Glasgow.
Malcolm begins the first of two terms (1996-2002) (2004-2011) as a Board Member of INAISE, the International Association of Investors in the Social Economy, and was its President, 1997-2001.
1998 Malcolm was a member of the advisory group to the Small is Bankable Report from Joseph Rowntree Foundation and a member of the advisory group to the Development Trusts Association on asset based development,
2000: Malcolm joins the trustee board of the Big Issue Foundation (2000-2007) and became its chairman in 2003
Member of the SEEDA social capital fund study group and the working group on social investment in Scotland.
2002: Charity Bank opens its doors. It is registered as a charity by the Charity Commission and authorised as a bank by the Financial Services Authority. Charity Bank launched by Chancellor of the Exchequer at 11 Downing Street, 17 October. Opening balance sheet of £6.4 million.
Founding board member of the Community Development Finance Association, 2002-2003
Member of the Advisory Group of global foundation leaders to the World Economic Forum, to 2007
2003: Under Malcolm’s guidance, Charity Bank is the first bank to be a community development financial institution (CDFI), accredited by Government to deliver the community investment tax credit. Launch of the first tax effective community investment deposit account, the Charity Bank CITRA (Community Investment Tax Relief Account)
2004: Leads a consortium of third sector organisations awarded mandate to manage £125 million Futurebuilders investment fund on behalf of Home Office.
2005 Charity Bank NEMSEEA Awards winner; UK Charity Award, ifs Banking Services winner; and first ifs innovation award for the CITRA.
2007: Yorkshire Forward agrees to invest £10 million into Charity Bank; the first investment of its kind by a Regional Development Agency.
BEEAM Enterprise Awards winner and UK Charity Awards Professional Services winner
2008: The first ever Charity ISA launched, the only tax-free savings account where 100% of the funds, the deposit as well as the interest, is used for a charitable purpose.
Charity Bank is selected to administer the £3 million Cylch Capacity Building Investment Fund for Welsh recycling organisations.
Charity Bank West Kent business in the community and Malcolm Hayday entrepreneur of the year awards
2010: Building Change Trust invests £1million capital in Charity Bank to benefit community and voluntary groups in Northern Ireland.
Charity Bank wins two awards from the Institute of Financial Services: the ‘ifs Award for Outstanding Innovation’ and ‘Social Responsibility and Community Banking’.
2011: Charity Bank makes an unaudited surplus in excess of £350,000 with a balance sheet that exceeds £80 million.
Malcolm has also been a member of the Advisory Group for NCVO’s Sustainable Funding Project, and a member of the International Advisory Committee of NESsT, the non profit enterprise and self-sustainability team, and trustee of NESsT UK Limited.
He has contributed to the Banking on Culture report; and work on new financial instruments with the Arts Council.
About Charity Bank
Charity Bank is the world’s first general registered charity that is also an authorised bank. It lends to charities, social enterprises and community organisations, including those that would find it difficult to secure funding from traditional banking sector. It invests its depositors’ money in loans to support charities and enterprises that benefit society and publishes details of every loan it makes.
Charity Bank is committed to transparency and community involvement. It provides hands-on support to the business and charities it lends to, as well as encouraging its own staff to volunteer within the community. Charity Bank’s innovative approach to banking and its mission to benefit society have enabled it to lend over £165m to charities and social enterprises, touching the lives of 3.5 million people in communities across the UK.
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