Being held for the first time in the UK, the World Council of Credit Unions Annual Conference brings together Credit Union leaders and decision makers from the 91 countries in which they operate. In previous years it has been hosted in Hong Kong, Barcelona and Las Vegas and this year Glasgow, home of one of the highest concentration of credit union membership in the UK.
CUNA Mutual Group, the worldâs largest credit union insurer, attributes the continuing growth of the credit union movement to several factors, including an increasing consumer desire to use mutuals and co-operatives. This was given a further injection by the banking crisis two years ago; as purse strings tighten and the traditional banking model is questioned, consumers are looking to fairer, more transparent providers who prioritise their needs over short term financial gain.
Paul Walsh, CEO of CUNA Mutual Europe, comments, âHigh street banks are increasingly withdrawing from localism to reduce costs; and in many cases they are closing down branches and pushing customers to online services. As mutual lenders and credit unions offer a more personalised, local service, they are becoming even more favoured and loved by consumers.
Over the past five years, all regions in which credit unions operate have experienced positive membership growth, according to the World Council of Credit Unions official statistics. It is the Caribbean, Africa and Europe who are seeing the greatest increases in membership of 76%, 63% and 27% respectively. In Great Britain, credit union membership has increased by 57% and assets have grown by over 37% from 2005-09. Credit Unions in Great Britain increased the loans they advanced by 26% over that period, whilst traditional lenders curtailed consumer loans post the 2007/2008 downturn.
Paul Walsh, CEO of CUNA Mutual Group, added, âIn this current economic climate, consumers need to borrow but banks have reduced their consumer loans. Credit unions have capital and are able to continue lending, which can only be good news for the growth of the market.
In Great Britain, with the strong leadership of the Association of British Credit Unions (ABCUL) we are confident that the forthcoming Legislative Reform Order (LRO), government investment and continued membership expansion positions the countryâs Credit Unions well for sustained growthâ.
Adding further momentum to the UK Credit Unions, the Government recently pledged Â£73m to support credit unions over the next four years, as a result of the continued work of ABCUL.
Paul Walsh, CEO of CUNA Mutual Group, concluded, âThe combined mutual sector here in Great Britain, consisting of Credit Unions, Building Societies and the Co-Operatives, have a central role in the future of our financial sectors and the growth of credit union movement in the UK suggests a strong future for the countryâs mutual sector.â