A major growth plan for the UK credit union sector has been launched today in Westminster, setting out a roadmap to double its membership from 2.2 million to 4.4 million by 2035 and unlock an estimated £6.4bn in additional annual economic growth.
The Credit Union Growth Plan is the product of extensive collaboration across the credit union movement, developed by representative bodies across the UK. Its authors promise “a clear, evidence-based framework for scaling the sector’s reach, resilience and impact at a critical moment for financial inclusion, mutuals and co-operative growth”.
Announcing the plan, the Association of British Credit Unions (Abcul) said: “With the UK Government having recently published a refreshed Financial Inclusion Strategy, including landmark commitments on credit union transformation, the plan provides the basis for that transformation to make credit unions a central part of a more inclusive, competitive and resilient financial system.
“It contributes to the government’s ambition to double the size of the co-operative and mutual economy and the Mutuals & Co-operatives Sector Business Council which has been established to drive that agenda forward.”
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The plan sets out “the proven social and economic value of credit unions”, and calls for a renewed programme of reform, investment and support to bring back the strong growth seen by the sector in earlier decades.
This former growth meant that between 2002 and 2012, UK credit unions doubled their membership and trebled lending and savings. By contrast, growth over the past decade has slowed to around 30%.
“The plan sets out how targeted action can reverse this trend and enable credit unions to support millions more people,” says Abcul, “particularly those underserved by mainstream financial services.”
The plan sets out five pillars for success:
- Collaboration and consolidation
- Leadership and skills
- Innovation and infrastructure
- Legislation and regulation
- Appropriate investment
It is hoped this will form “a practical roadmap for strengthening credit unions as modern, sustainable financial institutions capable of supporting household financial resilience, workplace financial wellbeing, SME growth and the transition to a greener economy”.
The plan has been jointly developed and endorsed by the UK’s credit union representative bodies, including Abcul alongside ACE Credit Union Services, Building Societies Association (BSA), Irish League of Credit Unions (ILCU), National Credit Union Forum (NCUF), Scottish League of Credit Unions (SLCU), and UK Credit Unions (UKCU).
“From the perspective of credit union leaders across the UK, the growth plan is a timely and welcome statement of ambition,” said ACE CEO Carmel Swan. “As a trade body supporting smaller credit unions, we particularly welcome its focus on reform and investment that will help credit unions of all sizes modernise and grow sustainably. With the right changes, smaller credit unions can innovate, expand access and continue delivering vital services to their communities.”
Abcul CEO Matt Bland added: “This growth plan is the product of genuine collaboration across the credit union sector and reflects a shared ambition to build on our strengths and unlock our full potential. Credit unions are uniquely well-placed to grow their reach and impact at a time when financial inclusion, resilience and mutual models matter more than ever.
“By setting out clear priorities around collaboration, skills, innovation, regulation and investment, this plan provides a practical roadmap for sustainable growth and a stronger future for the millions of people and communities we serve.”
BSA CEO Sarah Harrison said: “The welcome publication of the Credit Union Growth Plan reflects the importance and relevance of the sector and its potential to support more people, particularly those underserved by mainstream financial services.
“With the government’s ambition to double the size of the co-operative and mutual sector, and alongside the Building Society Growth Plan, we are committed to unlocking the full potential of financial mutuals to deliver inclusive growth and long-lasting value to people, communities, and the economy.”
Martin Fisher from the ILCU said: “From a Northern Ireland perspective, the growth plan is a timely and welcome statement of ambition for a sector that plays a vital role in community resilience and financial inclusion. It recognises the distinct legislative and regulatory environment in which our credit unions in Northern Ireland operate, while setting out a shared UK-wide pathway for reform, investment and collaboration to ensure credit unions here can grow, innovate and serve even more people and local economies.”
Frances McCann from NCUF said: “NCUF welcomes this growth plan as an important and practical framework for sustainable development across the UK credit union sector. This plan reflects genuine sector collaboration and sets out a clear pathway for credit unions to modernise, innovate and expand their reach.
“The focus on collaboration through credit union service organisations, strategic investment in infrastructure, and targeted legislative reform will be crucial in helping credit unions compete effectively and serve more communities.
“We look forward to working with government, regulators and partners to turn these recommendations into reality, ensuring credit unions can play their full part in building a more inclusive and resilient financial system.”
SLCU CEO Dermot O’Neill said: “This growth plan sets out a clear and confident ambition for the future of the credit union sector. It shows how representative bodies, reflecting different sizes, models and traditions, can come together to agree a shared direction for growth, grounded in collaboration and focused on delivering real, lasting benefits for members, communities and the wider economy.”
Dawn Vear, CEO of UKCU, said: “We strongly support this collaborative growth plan which provides the strategic clarity and momentum needed for credit unions to scale their impact and play an even greater role in building a fairer, more inclusive financial system. With the sector united behind this vision, we are committed to working alongside partners, policymakers and communities to ensure credit unions have the tools, investment and regulatory environment required to thrive in the years ahead”.
The consortium is calling on government, regulators, policymakers, funders and partners to engage with the growth plan, support its recommendations and work with the sector to unlock its full potential.
