Funds Lent by Welsh Credit Union Movement Spent in Local Community

Tuesday 23 January 2024

A survey states that of almost 1,200 credit union members in Wales 72% of the money lent by a credit union was spent in the local community, with a further 8% spent elsewhere in Wales.

Nicola Field, Manager of Bridgend Lifesavers Credit Union is urging people to take advantage of the valuable services credit unions provide, which in turn benefits the entire community.

“The pandemic has seen communities pull together in many ways, but an unexpected consequence has been members putting more money aside, which in turn gives us more money to lend more to those who need it,” says Nicola.

Credit unions in Wales have 84,000 members. Membership has almost doubled in a decade, with savings up by 150% and loans by 188%.

Nicola continued: “The financial impact of the pandemic has seen a division between those who have been badly hit by reductions in pay, furlough and redundancies, while others are working and have been able to save on outgoings.

“Community credit unions are recycling that finance from our members to ensure that those who need a helping hand are able to access loans with affordable rates of interest.”

Nicola added: “There is significant evidence that borrowing from credit unions helps local businesses and economies and that is something that will be sorely needed as part of the financial recovery ahead.”

Most credit unions in Wales kept branches open through lockdowns while improving digital services to improve accessibility. This has led to an increase in people joining, saving and borrowing online.

Source – Wales online