Their strength lies in their capacity to capture and recycle money within the local economy, to be a resource for all the community and to contribute to community regeneration. They are socially inclusive in nature having to appeal to a broad spectrum of people for membership and to attract volunteers with a range of skills.
Credit unions provide accessible savings, low cost loans and other financial services.
As locally owned businesses they have economic objectives complimented by social objectives with a clear commitment to mutuality, community and social goals. Recent interest in credit unions has stemmed from Government's wish to tackle financial exclusion and the recognition that credit unions have a significant role to play in helping Government deliver. The Treasury Taskforce concluded that while credit unions could indeed play an important role in tackling financial exclusion, this would only be possible through a significant expansion of membership and the services provided so that credit unions would develop as broad based community institutions with a wider appeal which complement the established banking sector. It is widely recognised that the credit union movement has been more successful in Scotland than other parts of the UK, and indeed there are some strikingly successful examples in Scotland and we need to draw on the experience of these credit unions and learn from them. However, the movement in general in Scotland has some way to go if it is to become financially viable and sustainable in the long term, and credit unions recognised as businesses with a social purpose operating as professionally run financial services providers.