Greater Manchester credit unions see increase in members as people struggle with finances during Covid

Tuesday 16 January 2024

Many credit unions in the North West have seen a huge increase in members as people continue to struggle financially due to coronavirus.

In November, eight credit unions from across Greater Manchester joined forces to launch a Covid-19 recovery plan, hoping to offer £15m in financial support to members.

“We are definitely seeing younger people coming to see us. I think it is particularly hard for young people at the moment because their life chances are so affected by Covid,” says South Manchester Credit Union (SMCU) CEO, Sheenagh Young. “We are definitely seeing younger people coming to see us, they are finding that we are probably more accessible than they realised because of the digital approach that we have got and I think on social media our marketing is reaching out more and I think it is particularly hard for young people at the moment because their life chances are so affected by Covid.”

One member, Darren Howard has taken advantage of credit unions as money became tight due to the coronavirus lockdowns. Darren benefitted from taking out a loan with SMCU, in August when he needed a new van, but after being unemployed for several months he did not want to be hit by high interest rates.

He says: “I use a credit union because the interest rates are low and it is quick and easy. Money’s in the bank within the week… and it’s very straightforward.”

South Manchester Credit Union is one of eight who have come together to help people out during the Covid-19 pandemic.

Sheenagh and her team have been kept busy throughout lockdown. She has also noticed that for some people lockdown has been a chance to build up their savings

Sheenagh added: “We are finding that for some people lockdown has been a time when they have been able to save, their spending has gone down, and perhaps they have been doing extra hours if they are a key worker, working at a hospital so they have saved up more money and they are perhaps starting to think of their finances in a different way .”