Commenting on the government’s report on financial inclusion, Abcul CEO Mark Lyonette said that the creation of more credit union accounts would enable more people to have better debt management plans.
He said: “More credit unions would be able to provide the account to their members if they had funding to help them with the initial investment.
“The credit union current account has advantages over traditional basic bank accounts which will attract many more members to credit unions, where they will be able to access the affordable credit and safe savings we all know are so vital in promoting financial inclusion.”
Last week a Treasury select committee published a report on financial exclusion which recommended that funding from the Financial Inclusion Fund for credit unions wishing to offer the Credit Union Current Account be given.
By enabling more people to open bank accounts, one effect should be better debt management as people can keep better track of their finances.