Credit unions becoming ‘more effective’

The Association of British Credit Unions Ltd (ABCUL) research says that it was helping low-income families save, with nearly half saying that credit unions were their only method of saving.

“This report shows how credit unions are reaching a wide range of people in their communities and provides an invaluable baseline from which credit unions can measure their current and future work,” said ABCUL chief executive Mark Lyonette.

A credit union is a non-profit cooperative financial institution owned and controlled by its members and only they may deposit money with the union, or borrow money from it.

According to the report’s findings, 41 per cent of members had stopped using home credit thanks to the unions, which are geared towards helping the least well off members of society.

Mr Lyonette said that with the success he hopes the scheme will expand and help more people facing debt and other financial difficulties.