North Wales Assembly Member Mark Isherwood has called on the Welsh Government to continue supporting Credit Unions in Wales to establish their financial independence and ensure their sustainability.
Mr Isherwood made the plea during a Short Assembly debate on ‘Credit Unions - A Key Contribution to Tackling Financial Exclusion’.
He said:
“As somebody who previously worked in the mutual building society sector, I welcomed the 2012 UK Credit Unions Act, freeing Credit Unions to work with housing providers, community groups, employers, social enterprises and charities to bring financial services to new groups of people.
“Although Credit Union membership in Wales has grown 50 per cent in the last five years, now standing at 80,000, and Welsh Credit Unions are by far the biggest lenders of affordable credit to the financially excluded, only approximately 2.5 per cent of people in Wales currently use Credit Unions, compared to 46 per cent in the United States.
“As Welsh Credit Unions state, the Welsh Government should continue to help them in their aim of establishing a fully financially independent and sustainable sector by 2021, building capacity, ensuring greater and more effective collaboration, and supporting the development of shared Credit Union services. But Welsh Government should also examine the not-for-profit community banking model developed in Wales by Responsible Finance, working with credit unions where credit unions can’t.”
Mr Isherwood added: “In my meetings with the Association of British Credit Unions Limited, they told me that the key issue facing Credit Unions’ financial sustainability was the scheduled end to Welsh Government funding in 2017.
“They also told me that they were working with Credit Unions in Wales to develop a solid evidence base showing added social value and to focus on broadening their membership base collaboratively, but needed the Welsh Government to provide capacity building support for the transition beyond 2017.
“I repeatedly called on the Welsh Government to deliver this and welcomed their subsequent announcement of over £400,000 for Credit Unions during 2017-18.
“However, the Welsh Government should continue to assist and promote their growth, and prioritise the need to ensure a sustainable Credit Union sector in Wales".