Schools and post offices should link with credit unions to widen access to affordable credit, we’re telling Government today.
As part of our response to the Treasury’s consultation on how credit unions can be supported, we argue that linking them to existing Government services would help bring credit unions into the mainstream and greatly increase take-up of their services.
If these links were combined with common savings goals, saving with a credit union would become just a normal part of everyday life – for example, parents could save a few pounds each week towards the cost of a school trip, and both they and their children would see the benefit, encouraging them to save more from an early age.
Credit unions could also be allowed to set up ‘satellite’ branches, where an existing successful credit union holds their funds. The people running these satellite credit unions would not then need to be authorised by the Financial Conduct Authority, increasing the diversity of people involved in operating credit unions.
We also think that credit unions should be allowed to opt out of the ‘common bond’ requirement that means their members need to have something in common (like working in a particular area), to let them build their membership and make them more accessible.
You can read our full response to the consultation on British credit unions at 50 here