Councillors in West Lothian, Scotland, are looking to support the credit union sector in a bid to tackle banking deserts and payday lenders.
The closure of bank branches, prompted by reduced footfall and the switch to online services, is a growing concern across the UK, prompting fears of financial exclusion and communities left with no over-the-counter banking. It has prompted a number of co-op and credit union responses in recent years, including plans to launch Banc Cambria, a national community bank in Wales, or the addition of OneBanks kiosks to Co-op Group stores in Scotland. Last year, Blaenau Gwent announced its ambition to become Wales’ first “credit union county”.
With branch closures threatened in West Lothian towns Bathgate and Linlithglow, and smaller towns and villages already without a branch, SNP and Labour councillors tabled a joint motion, signed by council leader Lawrence Fitzpatrick, which states: “Credit unions have the potential to play a major strategic role in the fight against poverty and financial exclusion.”
The motion, passed by the council, added: “As a result of the withdrawal of many of West Lothian’s high street bank branches there are many people who will struggle further to manage their finances. Without credible, structured and accountable alternatives they could fall victim to unscrupulous lending practices.”
Related: South Wales credit unions merge in bid to tackle high street banking deserts
Actions suggested by the motion include support for existing credit unions through council information sites and encouraging the establishment of ones.
This could mean the introduction of the role of credit union development officer – following the example of Scottish Borders Council, which created the post last August when it hosted the launch of the Caledonian Credit Union.
Councillors on West Lothian – which already offers credit union payroll deduction services – are also considering introducing cautions to anyone accessing pay-day loan sites on council computers in libraries and community centres, offering “information on how to contact more affordable lenders in the area like the credit union can be provided”.
Image of West Lothian Civic Centre, the council’s meeting place, by M J Richardson/Wiki CC
