Credit unions on target for 10,000 current accounts

The number of current accounts operated by the country’s credit unions will soon reach 10,000 reveals the Association of British Credit Unions (ABCUL) at its annual conference in Blackpool this weekend.

Credit unions are financial co-operatives set up to give access to financial services for their members. Although credit unions have been offering financial services for over 25 years in Britain, they are often overlooked by people as a convenient place to save and borrow.

But the introduction of current accounts is changing all that, says Mark Lyonette, Chief Executive of ABCUL. “More and more people are recognising that their local credit union is a valuable financial institution right on their doorstep. It is rewarding for me to be able to confirm that we are now on track to see the 10,000th current account opened within weeks – and this is in addition to over half a million people who borrow or save with credit unions across the country.”

Even today, many people in the UK do not have current accounts. The Government has identified that individuals without current accounts are generally at a disadvantage in society. Some people may be worried about bank charges, whilst others may need direct debit facilities to pay their bills. Whatever the reason, the Credit Union Current Account is designed to let more people access the benefits of a current account.

According to Mark Lyonette, the next 12 months are likely to see a doubling of the number of credit unions offering banking services from 11 to more than 20.

“We can offer members a current account service similar to that offered by banks, but with all the added extras associated with a financial co-operative that is owned and run by its members, for the benefit of those members.”