What credit unions need - policy and campaigns

ABCUL's blueprint for development has informed its work over the past ten years to build a sustainable and effective credit union sector, capable of meeting the financial needs of millions of people. This work has been based on 4 key areas and draws on experience and best practice from successful credit union movements around the world.

What credit unions need

Enabling legislation and proportionate regulation

. The Legislative Reform Order going through Parliament will give credit unions more freedom to reach out to new groups and develop new services
. Co-operative and Community Benefit Societies and Credit Unions Act will allow credit union legislation to be more easily updated in the future
. Financial Services Authority (FSA) regulation has brought with it membership of the Financial Services Compensation Scheme

Next steps - We are keen to see the legislation complete its passage through Parliament and we continue to work with the FSA to ensure that credit union's unique model is reflected in regulation.

Sound governance and strong management

. Governing for success - a code of governance for credit unions - was developed by ABCUL in partnership with credit unions and other stakeholders.
. ABCUL provides a range of training for officers and staff in credit unions. Classroom, in-house and on-line training are available in a wide range of subjects

Next steps - Increased corporate volunteering to bring new skills into credit unions - an online volunteer hub would allow credit unions and potential volunteers to match skills and opportunities

Sustainable business models, products and services

. New services available in credit unions including Child Trust Funds, Cash ISAs and the Credit Union Current Account;

Next steps -The major missing ingredient which would see credit unions grow to play the significant role that they do in many parts of the world is the introduction of 'back office' integration. Elsewhere in the world it has been shown that if credit unions work together on providing behind the scenes services on a central basis it has a dramatic impact on their scale.

For example if a number of credit unions in Britain shared one banking platform it would enable them to offer shared branching through the post office network and each other's branches. It would also allow for a telephone helpline giving credit unions much longer opening hours and easy internet access to accounts for those who were able to use this.

Crucially, this would allow a tie in with the Post Office network which would vastly increase access to credit union services, including affordable credit and safe savings. This was recognised by the Department for Business, Innovation and Skills in its response to the consultation on Post Office financial services in March 2010.

A briefing on what a credit union-Post Office link up would look like are available here and set out ABCUL's vision for back-office integration and a partnership with the Post Office.

Appropriate Investment

. Over 100 credit unions have been involved in making affordable, responsible credit more easily available by making a quarter of a million small, short term loans through the Department for Work and Pensions Growth Fund. To January 2010, 231,201 Growth Fund loans were approved and payment made to a total value of £100,806,392.

Next steps - the Growth Fund has been a great success, delivering estimated savings for individuals of over £86 million (estimated by DWP). This funding should continue to allow more people to benefit from affordable credit in years to come.

Investment in a back office for credit unions will bring the benefits outlined above, allow a tie in with the Post Office network and has the potential to bring inclusive financial services and affordable credit to millions more people.

ABCUL: Credit unions welcome progress on legislation

ABCUL – the Association of British Credit Unions – has welcomed steps taken in Parliament this week which will see increased access to safe and ethical financial services in communities and workplaces across the country.

Credit union delight at £73 million Government boost

Mark Lyonette, Chief Executive of ABCUL - the Association of British Credit Unions, has welcomed today's announcement that the Government is investing up to £73 million in credit unions over the next four years, and that the Post Office could play a central role in delivering credit union services.

ABCUL: Now there's an easier way to find your local credit union

Around 80% of people in England, Scotland and Wales can join a credit union because of where they live, work or the organisations they're members of, and this is growing all the time. Now there's one place where they can find out about the credit unions they can use.

ABCUL: Credit unions welcome Post Office plans

ABCUL - the Association of British Credit Unions - has welcomed today's policy statement from The Department for Business, Innovation and Skills (BIS) on its plans to secure the long term future of the Post Office.

ABCUL: Credit unions can help increase diversity in financial services

Speaking at a fringe event at the Conservative Party Conference, Mark Lyonette explained how credit unions now serve nearly a million people in England, Scotland and Wales and sought reassurance from Financial Services.