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Credit Unions - a focus on ordinary people and their saving and borrowing needs
A few years ago we agreed an award of £297,000 to an embryonic credit union serving Lambeth. Our award was to support a banking inclusion project - a way of helping those who often found themselves unwelcome by high street banks.. That award was in addition to a running cost grant of £270,000 we had already made.
Our aim was to ensure a self-sustaining local credit union that would provide
- access to full banking services for people on low incomes
- access to affordable loans
- the opportunity for those unfamiliar with financial and budgetary practices to learn them
- a wider programme of financial literacy amongst low income groups
The grant fitted well with our interest in making a long-term and sustainable difference to Lambeth residents facing financial poverty.
The new Acre Lane Brixton branch opened 18 November 2010
For several reasons the local credit uUnion ran into difficulties. During 2009 and early 2010 we coordinated discussions to find a solution and to ensure a continuing credit union provision for Lambeth. As a result, a credit union in Lambeth was saved by an FSA-approved merger of the Lambeth CU with a neighbouring one, to create a new, enlarged body known as the London Mutual Credit Union. This development accelerated provision of full banking services to credit union members in Lambeth.
Links
LMCU
ABCUL (national body for Credit Unions)
Financial Services Authority leaflet
about credit unions