Last week I had the pleasure of attending the 10th anniversary celebrations of one of the cdfa’s founder members: South Coast Moneyline, at Portsmouth’s Spinnaker Tower. At the event, it was announced that SCML has just received authorisation from the FSA to provide mortgages, to make it easier to deliver their home improvement loans scheme – a fantastic achievement, one of which they are justly proud.

It made me reflect on how far the sector has travelled in just a few short years. Many people thought that CDFIs would not last, that we were just a novelty and that we would disappear under the shifting sands of public policy. Yet, we have proved them all wrong. We are still here, ten years on – stronger than ever. Members of the cdfa are expanding, creating new products and entering new markets: the austere times we are living in are presenting them with many opportunities which they will be maximising over the coming months and years. CDFIs love a challenge – they always did – and that is why they have become key players in the alternative financial market.

And yet, sustainability still bedevils virtually all CDFIs. It has from their inception and it will for sometime to come. It may be that some CDFIs will always need a level of public subsidy, but we are working to ensure that it is as small as possible.

One way to improve our sustainability is to increase our scale and reach: greater numbers of borrowers and better market penetration will make a significant contribution to strengthening our businesses. We need to harness the opportunities that the internet presents to us: online social and professional networking has changed so much in the last couple of years. Now is the time we must use it to our advantage.

There is no doubt that the internet can quickly reach our market and, with clever use of technology, it could help streamline the due diligence process. The cdfa is working with Red Cloud Technology to create an online platform that will really create a step change in its members scale and reach. A really exciting opportunity for cdfa members and one that will help crack the sustainability issue. In turn, this will ensure we continue to grow from strength to strength and to serve those who need us – long into the future. Watch this space…

Bernie Morgan, Chief Executive, cdfa