September 15, 2010
Can credit unions make the breakthrough?
Across the UK, credit union membership is about a tenth that of countries like Canada, US and Australia. For some reason, credit unions haven’t broken through in this country as they have elsewhere. Despite the behaviour of our banks, we seem reluctant to move our custom elsewhere. In part, this may be an issue of image. If that’s the case then Castlemilk Credit Union is moving in the right direction when last week they threw open the doors to their smart new offices. The new Coalition Government seems committed to grow the movement
‘We are determined to help credit unions grow and expand into the future, but growth and expansion must be established on the basis of credibility – credibility that can only come as credit unions build sustainability’ MP Mark Hoban, financial secretary to the treasury
The government has confirmed it will ‘do whatever we can’ to help credit unions grow and provide fairer banking at a cross party meeting in Westminster yesterday.
The All Party Parliamentary Group (APPG) on credit unions heard from financial secretary to the treasury Mark Hoban, who set out the government’s plans for credit unions and said their growth was part of the coalition’s commitment to foster diversity in financial services, promote mutuals and create a more competitive banking industry.
He said: ‘We are determined to help credit unions grow and expand into the future, but growth and expansion must be established on the basis of credibility – credibility that can only come as credit unions build sustainability. And it is in the interests of credit unions, the members of credit unions and the movement as a whole that sustainability is built.
‘This government believes that strong credit unions will greatly enrich British society, so it is in our interest to do whatever we can to help the credit union movement to prosper.’
The APPG’s chair, Damian Hinds, said it was an exciting time for the credit union movement in light of new legislation affecting credit unions and banking, partnership potential with the Post Office and a ‘sharper focus on debt as an issue at all levels’.
‘I am sure we [the APPG] can play a helpful role in that agenda,’ he said.
The announcements were welcomed by Rev Antony Macrow-Wood, president of the Association of British Credit Unions (ABCUL).
‘New legislation will help credit unions reach out to many more people. The work we are doing to develop a back office and extend our services through the Post Office will also make credit unions more accessible and convenient and we need to work together to achieve this,’ he said.
The APPG meeting was also supported by The Co-operative Bank