Empowering Lives Report: The Social Impact of Merseyside Credit Unions

Friday 26 January 2024

Five Merseyside Credit Unions have collaborated to provide research to show the vital social and economic role they provide for communities across the area.

The report, which was supported by Fair4All Finance, was based on a survey of nearly 1,000 credit union members across Merseyside aiming to help understand the impact of credit unions, inform policy, and identify opportunities and challenges within the sector.

“Credit unions are thriving as businesses and this report shows that the credit union model is sustainable,” says ABCUL CEO, Robert Kelly. “The research found that participating credit unions have the key foundations for long-term success including high member satisfaction, strong and shared values, and continued loyalty.”

Furthermore, the research showed that credit unions have a significant social impact on members meaning ‘people can afford goods and services that might otherwise be out of reach, or in reach only with stress or at greater cost’ and for many families ‘It means Christmas is ‘saved’ and memorable’.

The five credit unions featured provide services to over 55,000 people across the Northwest and collectively, the participant credit unions made more than 35,000 loans valued at more than £35m. The report estimates that the participant credit unions are saving borrowers between £5.6m to £23.5m per year in interest payments on loans. Looking ahead, even if participant credit union lending holds steady rather than grows, it is estimated this could mean an extra £28-£118m of benefit for low to average income borrowers in Merseyside over the next five years.

The report also found customer satisfaction was extremely high across credit unions and interviewees valued the delivery of a friendly team who had gone ‘the extra mile’ if needed. Furthermore, credit unions were found to often provide better accessibility and availability of credit for their members as well as better rates than many other credit providers.

Eileen Halligan CEO, Central Liverpool Credit Union said: “When people have a financial partner who genuinely cares about their wellbeing, it creates a ripple effect of positive change”.

Karen Bennett CBE CEO, Enterprise Credit Union said: “This research proves what we have always known and underpins our mission of providing quality inclusive products for our members.”

The five credit unions that partook in the research were Central Liverpool Credit Union, Enterprise Credit Union, Liverpool Community Credit Union, Lodge Lane and District Credit Union, and Riverside Credit Unions Ltd. Combined,

Read the full report here.