Fair Banking Act Will Transform Millions of Lives says Research

Thursday 12 September 2024

ABCUL is a member of the Fair Banking for All campaign, which is calling for a Fair Banking Act in the UK.  On Thursday 12 September 2024, the campaign published new paper highlighting the impact a Fair Banking Act could have on the availability of affordable credit and the growth of the credit union and CDFI sectors. This could transform the life chances of millions of people and help thousands of small businesses to grow and thrive.

The new research, as part of the Fair Banking for All Campaign shows:

• A Fair Banking Act could lead to a thirteen-fold increase in the level of annual lending by purpose-driven finance institutions, from an estimated £250m per year now up to a £3.3bn per year with a Fair Banking Act in place.
• The increase in consumer lending could be equivalent to or higher than the total amount currently owed by individuals to illegal lenders.
• The increased lending to SMEs could increase SME turnover by up to £3.9bn, supporting up to 9,900 jobs over five years.

” ABCUL supports calls for a Fair Banking Act to make sure affordable credit is available to everyone who needs it,” says ABCUL CEO, Robert Kelly.  “Credit unions are financial co-operatives, so we’re owned and governed by our members – that means we’re closer to, and understand, the people who come to us for loans and savings.

“We see firsthand the need for increased supply of affordable credit, and the positive difference it can make in building the financial resilience of our communities.  As membership numbers continue to increase reach (now at its highest recorded figure), we know people want the sector to grow the exemplary care and services it has always offered.  “.

The research paper available here.  More information on the Fair Banking for All Campaign is available here.