Bank of England Highlights Credit Unions’ Role in UK Financial Inclusion

Thursday 29 January 2026

The Bank of England has shared a compelling look at how credit unions are making a real difference across the country, with a special focus on South Manchester Credit Union (SMCU). The feature, which includes video interviews with staff of SMCU and members, shines a light on the social impact and financial wellbeing role that credit unions play in their communities.

In the video, Sam Woods, CEO of the Prudential Regulation Authority (PRA) and Deputy Governor of the Bank of England, discusses recent regulatory measures proposed jointly by the PRA and the Financial Conduct Authority (FCA) aimed at supporting the growth of the mutuals sector – of which credit unions are a key part. These measures form part of broader efforts to strengthen community finance and mutual institutions in the UK’s financial ecosystem.

The Bank’s visit included conversations Sheenagh Young, CEO of South Manchester Credit Union, highlighting the organisation’s commitment to empowering local members. Also, a local member and Manchester resident shared how a loan with SMCU has helped him develop his business.

ABCUL Chief Executive, Matt Bland commented on the campaign saying: “The Bank of England’s spotlight on South Manchester Credit Union is a timely reminder of the vital role credit unions play in supporting financial resilience and local economic growth.

“We particularly welcome the ongoing commitment from the Prudential Regulation Authority and the Financial Conduct Authority to develop proportionate, enabling regulation for mutuals. Clearer pathways, streamlined processes and a shared understanding of the credit union model are essential if the sector is to grow sustainably and reach more communities across the country.”