Growth and Sustainability a Priority for Sector says Minister

Friday 26 January 2024

The Economic Secretary, Andrew Griffith MP made a speech at Mansion House on the topic of financial literacy and inclusion. In the speech, the Minister highlighted the important role Government has to increase financial inclusion in communities and believes the credit union sector has a valuable role to play in this.

Speaking to delegates, the Economic Secretary said: “Ever since the 18th century, mutual societies have helped meet the needs of local communities.

“Given their distinct business models, credit unions face a less onerous set of regulations than non-mutual retail banks.  For example, credit unions have exemptions from the requirements of the Consumer Credit Act 1974, which enables them to offer credit at affordable rates to their members who might otherwise be excluded from credit.

“To help further the growth and sustainability of credit unions in Great Britain, the government is bringing forward amendments to the Credit Unions Act 1979. For example, credit unions will be able to offer products such as car finance and distribute insurance to their members for the first time. It’s a good example of proportionate regulation – or deregulation – being used to improve inclusion.”

Encouraged by the Minister’s speech, ABCUL CEO, Robert Kelly said: “We believe that 2023 and beyond will be a hugely exciting time for the credit union sector and our ability to serve many more consumers across the country and to serve a wider share of the financial needs of households and communities.”

The full speech is available here.