Credit Unions Gather to Tackle The Cost of Living Crisis and Plan for the Future

Friday 26 January 2024

Credit unions and some of the sector’s key stakeholders from throughout Britain came together in Manchester this week for the ABCUL Cost of Living Crisis and Future Vision Summit.

Credit unions and their members are facing up to the daunting challenges caused by the current economic crisis, and ABCUL wants to bring together knowledge, expertise and passion from within and outside the sector to achieve positive outcomes for members and enable sustainable credit unions.

Speaking before the event, ABCUL CEO Robert Kelly said “ABCUL is the leading credit union trade association in England, Scotland & Wales and we think it only right that we use our influence to bring credit unions together for an opportunity to learn from each other, and those outside of the sector, so that ultimately credit union members receive the support they need now more than ever”

The day was broadly split into two. In the morning there was a focus on the here and now, and attendees were welcome by Robert Kelly and then heard from key note speaker Lee Healey of IncomeMax, followed by Niamh Evans from the ABCUL Policy team. The afternoon then shifted to the future. Robert Kelly revisited the key themes from ABCUL’s Vision 2025 to see if they were still relevant, and this was followed by Lauren Peel, Head of Markets, Consumer Insights and Product Design at Fair4All Finance and a panel of credit union CEOs. The day ended with an interactive session lead by David Batten of Hoot Credit Union and Andy Davey of The Co-op Credit Union, in which attendees had an opportunity to share best practice.

Lee Healey founded IncomeMax on the back of the financial crisis in 2009, and believes that we should live in a world where everyone has the money and support they need to thrive on their own terms. Lee delivered an inspiring key note with the message that money is energy, and that credit union stories are a key way the sector can show the country how they are helping everyone in society. Lee said of the day “It’s virtually impossible to live well without the right financial resources and credit unions, with their unique history, identity and values provide an amazing alternative to mainstream financial services and products. We’re in the midst of a post-COVID pandemic cost of living crisis, which is placing huge pressures on people. Credit unions, income maximisation services, debt advice providers and charities are well placed to help, but we need the resources and the capacity to deliver. With support we can deliver the very best outcomes for our customers and a deep social impact. To strengthen our position we need to become master story tellers. Telling stories provide our communities with a voice. They enable us to share what we do and why we do it with Government, funders and policy makers. Stories also help our staff really understand why we do what we do. There’s a beautiful story waiting to be told about credit unions and it is a story which goes way deeper than just money.”

Lauren Peel from Fair4All spoke of their strategy, and how it aligns with what the credit union sector wants to achieve – ‘a society where the long term financial wellbeing of all people is supported by a fair and accessible financial services sector’. Lauren also looked at the state we’re currently in and what this may look like in the future. Credit union CEOs then joined a panel hosted by Robert Kelly, and questions were also taken from the floor. Of the day Lauren said “Our vision Is a society where the long term financial wellbeing of all people is supported by a fair and accessible financial services sector. One of our three strategic pillars is increasing access to affordable credit. Credit unions and community finance providers have a role to play in increasing access, as do other providers including mainstream organisations and new market entrants. We are pleased to continue working with credit unions who share our vision of a scaled and sustainable community finance market. In 2023 we’ll continue supporting credit unions through capability building, awareness raising and providing opportunities to work with us on new product and service development – and also recognise that these opportunities won’t be for everyone. We welcome robust challenge in pursuit of our mission, especially when it is constructive and takes us forward, and understand that our goals and views won’t always align.  It is clear that there is work to do in how we collaborate with the sector, being really clear about what we can and can’t do given our mission, and by finding better ways to work to respect everyone’s time to work together to improve the lives of people in financially vulnerable circumstances”

The final session of the day saw David Batten & Andy Davey from Hoot Credit Union & The Co-op Credit Union follow on from an ABCUL All Member Webinar delivered last month in which four key pillars were discussed. Each pillar represents a priority for credit unions now in the cost of living crisis, and also as the country starts to recover: support for credit unions; support for credit union members; support for credit union staff & volunteers, and what support credit unions need from stakeholders. Attendees gathered in small groups and were asked to discuss each pillar and then share with the room. David said “It was great to start to bring together a suite of tools and ideas to help credit unions support their members and staff through the coming months. As a CEO I know the importance of reaching out for help and support if you need to – it’s not a sign of weakness. We’re stronger when we work together”

Reflecting upon the day, Robert Kelly said “We were delighted to see so many members and friends of the sector this week in Manchester. This conversation, and those which will follow it in the coming months, won’t be easy as these are supremely challenging times for credit unions and their members. ABCUL will continue to facilitate this and other discussions, to provide practical support for credit unions up and down the country”