Hoot Credit Union Transforms Members’ Lives and Boosts Local Economy

Friday 26 January 2024

Bolton-based Hoot Credit Union (HCU) has published its latest impact report – ‘The Owl Effect’ which measures the impact of Hoot Credit Union on its members and the community.

HCU has 6,700 members and since 2019, members have saved over £4.5 million in interest compared to high-cost lenders. On average, it was found that a member would pay 4.71x more in loan interest with a high-cost lender than with HCU.

Furthermore, HCU is not only saving members money compared to high-cost lenders, but the credit union is building its members’ long-term financial resilience. 86% of borrowers with HCU were saving for the first time and borrowers have building savings of at least £200 per year through the Family Loan and Savings Plan.

The credit union is a lifeline for residents in the area as 44% of HCU members in Bolton live in the bottom decile for Income Deprivation and 48% of members surveyed said they had no other alternatives for borrowing if HCU could not lend to them. If Hoot Credit Union could not lend to these members it is likely they could fall victim to a loan shark or have to borrow from an illegal money lender. The local economic landscape is also being transformed by the credit union’s work as member spending has provided a £20.9m boost to the local economy.

“We are very proud to be launching this report which shows how a local, community owned business can have a real and positive impact on the financial well-being of the people in its community.” Says David Batten, CEO of HCU.

David added: “To be able to demonstrate our social value, and the many ways we work to improve the financial lives of our members, means a great deal. It also is a testament to the hard work and commitment of our employees and directors.”

Read the full report here.