News Column

Abcul coop-Centre for Social Justice calls for action to expand credit unions

July 29, 2014

ENP Newswire - 29 July 2014

Release date- 28072014 - A new report from the Centre for Social Justice, Restoring the Balance, recommends measures to expand credit unions and community finance in order to address problem debt and encourage saving.

The wide-ranging report makes recommendations in four areas: helping people in debt; making the market safe; building a nation of savers; and a new vision for social finance in the UK.

Support for credit union expansion is recommended both as a means of encouraging saving, through making payroll deduction available as standard by employers, and supporting a new vision for social finance through a package of regulatory reforms such as increasing access to payment systems for smaller providers and giving credit unions more regulatory and legislative power to invest, innovate and collaborate.

The report's overall vision for credit unions and community finance is to see the sector flourish sustainably, independent of third party support.

ABCUL Chief Executive, Mark Lyonette, said: 'Our goal is to see credit unions flourish sustainably in Britain and we are pleased that this report echoes our vision. Measures such as providing access to credit union services through payroll deduction and improving credit union access to payment systems will be key if we are to emulate the success of credit unions in other countries. The report also makes an important contribution to the discussion around the appropriate balance of credit union regulation and legislation between power to innovate and experiment on one hand and proportionality on the other.

'Ultimately, credit unions will only succeed if we can develop a service which is attractive, accessible and meets the needs of a broad range of people,' he added.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: ENP Newswire

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters