Each participant of the CU Future programme has to complete the ‘Making a difference’ project throughout their 12 months of progression. As part of the programme, the participants must work together in teams, to propose a new idea, product or service to address key issues within the credit union sector – and will be presented to representatives of Credit Union Foundation, ABCUL and Citi at ABCUL Conference in March 2018.
The intention of the interview was for Paul to help Toni's progression in the project giving Toni an insight to how Credit Unions work differently to other financial organisations and how their members benefit from the service they provide.
Paul described what makes a good credit union and why its members benefit more than customers of other financial organisations: “Great Credit Unions are excellent with two essential parts of their business model; they are excellent with lending and they remain relevant by providing members with their other financial necessities, which include protection products.
“Credit unions in other mature markets provide insurance products because they are important, relevant and needed by their members. In doing so, this adds between 16% to 20% to their operating income, So, it’s good for members to get the services they need from the credit union, in a fair and responsible way, and at the same time members also benefit because the income generated by the credit union in providing these services is reinvested back in the member, by way of increased dividends or investment in member services.
“Put simply, by becoming the ‘home for financial necessities’, the credit union helps members, enhances member loyalty and engagement, and grows the credit union’s overall business.”
Paul expresses CUNA Mutual’ s continued support for the credit union movement and why CUNA Mutual work alongside ABCUL: “We’re supporting the team in ABCUL in assisting the legislature on broadening the credit union’s remit to enable our partners to help members better, smarter and thereby making credit unions stronger.”