| Over one in four households has little connection to mainstream financial services. These households are also the poorest in the country and pay disproportionately high charges to settle a bill, cash a cheque or borrow a small sum to meet everyday needs.This huge market is one that credit unions could and arguably should be servicing better. Most credit unions however recognise that it is also a market with the highest risks and with the highest costs. Under our stringent regulations it is also one that is hardest to compete for, against the more avaricious elements within the commercial sector.Credit union people have debated this essential dilemma for many years –“How do we compete against the predatory lenders……..and….How do we do so without making a loss!” | In answer to these questions, NACUW in joint research with the National Consumer Council (20031), New Economics Foundation (2004) and Salford University (2005) have been evolving new partnership approaches that are starting to show a way for credit unions to impact on financial exclusion.In 2004 the Financial Secretary to the Treasury launched our latest initiative, the Community Banking Partnership, as a ‘solution to financial exclusion’. A year further on the Government has established the Financial Inclusion Task Force and the Financial Inclusion Fund. |
| 1 Brown, M., Conaty, P., Mayo, E. (2003) Life Saving – Community Development Credit Unions, New Economics Foundation, National Association of Credit Union Workers and the National Consumer Council. |