Credit unions.

TheBanker

powerspowers said:

 Some CUs are very slick, operating mainly online with all the apps etc that a mainstream banks offer. Others are much smaller, sometimes staffed by volunteers. There has been a trend of smaller unions being merged into bigger unions as it’s a difficult market to operate in, and as a previous poster said, some folding. 

I’d have a look around on https://www.findyourcreditunion.co.uk/ and see what options you have locally, usually 2 or 3 cover an area and there are also employment based credit unions where members all work in similar industries. 

My CU is quite large now. It was formed from the merger of three smaller CUs, which themselves were formed through mergers, they cover four counties now.

Before the merger, my local CU was small and struggling to attract members. It was entirely volunteer run, and they were having a lot of problems with their computer system, which they could not afford to replace. There was no online access, everything was done in person or by phone, with statements being issued by post (using stamps!). Because of the computer problems and reliance on volunteers, it took a long time for things to happen (e.g. withdrawels from savings or consideration of loan applications). It wasn't  viable to continue which is why the board proposed a merger. Without the merger it is likely the CU would have been added to the list of FSCS claims listed in a post above. 

The merged CU is much better - it has a small number of staff employed rather than relying completely on volunteers. They have online access and a basic but functional mobile app. And they've been able to grow their membership by partnering with some of the large local employers to promote the CU. All in all, a better organisation following the merger. 

powerspowers

TheBanker said:

powerspowers said:

 Some CUs are very slick, operating mainly online with all the apps etc that a mainstream banks offer. Others are much smaller, sometimes staffed by volunteers. There has been a trend of smaller unions being merged into bigger unions as it’s a difficult market to operate in, and as a previous poster said, some folding. 

I’d have a look around on https://www.findyourcreditunion.co.uk/ and see what options you have locally, usually 2 or 3 cover an area and there are also employment based credit unions where members all work in similar industries. 

My CU is quite large now. It was formed from the merger of three smaller CUs, which themselves were formed through mergers, they cover four counties now.

Before the merger, my local CU was small and struggling to attract members. It was entirely volunteer run, and they were having a lot of problems with their computer system, which they could not afford to replace. There was no online access, everything was done in person or by phone, with statements being issued by post (using stamps!). Because of the computer problems and reliance on volunteers, it took a long time for things to happen (e.g. withdrawels from savings or consideration of loan applications). It wasn't  viable to continue which is why the board proposed a merger. Without the merger it is likely the CU would have been added to the list of FSCS claims listed in a post above. 

The merged CU is much better - it has a small number of staff employed rather than relying completely on volunteers. They have online access and a basic but functional mobile app. And they've been able to grow their membership by partnering with some of the large local employers to promote the CU. All in all, a better organisation following the merger. 

Definitely agree that mergers are a positive! The membership association that regulates credit unions (ABCUL) recommends planned mergers for strategic reasons rather than rescue missions when things become unsustainable.