You don’t need me to tell you last year was a tough one, for plenty of different reasons. Although the long-term financial impact of the pandemic still remains to be seen, one thing we can be sure about is that the ethical lending sector will rise to any challenge. Over the last 12 months, we’ve seen credit unions and community banks go above and beyond for their Members, and it has been a pleasure for everyone at incuto to be a part of this. We’re still here, helping our partners be the very best they can in the most challenging of environments. Catch up on our message to credit unions, and what we’re doing to help, here.
This year continues to be slightly different than normal, but a New Year brings optimism and the prospect of widespread vaccination provides us all with a light at the end of the tunnel. As we plan ahead for a return to normality, it’s the perfect time for our Members and prospective Members to get their finances in order. Here are 5 fantastic reasons to join a credit union in 2021.
Credit unions are here, and are here to stay
There’s no more resilient and consistent financial services provider than a credit union. The sector has been present in the UK since the 1960’s, and that’s no accident. Remaining true to the principles of responsibility and cooperation has been the secret to their longevity. Other financial models have come and go (such as high-cost, short-term lenders), whereas the ethical lending sector is stronger than ever.Saving to make a difference
The only constant in financial services is change. If we think about times gone by, people would generally open a bank account when they were old enough, and stay with their banking provider for years. Now, with the advent of challenger banks, such as Monzo and Revolut, consumers are much more transient, and place a higher importance on speed and convenience. Another consideration of the modern consumer, particularly younger generations, is the ethical and environmental impact of their bank. You won’t find a credit union investing your money in risky or unethical funds. They will use your money safely, to support other members through affordable loans - that goes towards holidays, home improvements, weddings, small businesses and much more.Services to suit you, not the other way around
As well as the long-term financial impact of the pandemic, we’ve seen varying effects in the short-term. Sadly, many have lost jobs or experienced reductions in income, whereas others will have seen their savings grow with fewer opportunities to spend. The reaction of credit unions has been to support members with exactly what they need. Whether it’s payments holidays for lending or easier access to their savings with Faster Payments, the sector has responded. An organisation that reacts and provides when it’s needed - that’s the hallmark of credit unions for years and will continue to be.Members, not customers
Credit unions are cooperatives. That means they’re run and owned by their members. You’ll never see a credit union CEO taking huge bonuses or exorbitant salaries. It’s this spirit of mutual benefit that separates CU’s from alternative banking options. Throughout the pandemic, credit unions have been a vital lifeline for so many people throughout the UK. They’ve gone above and beyond to ensure their members have access to their money, and have been at the end of a phone or an email to offer support and guidance when needed. The human element of credit unions is what sets them apart. Enabling this at scale is at the heart of everything we do at incuto.A sector moving in the right direction
We’re on a mission to digitally transform our community lender partners, and the strides forward made by the sector in the past year alone show how far we’ve come. Real-time Faster Payments allow our credit union partner members instant access to funds. The Post Office Banking Framework now allows members the option to access cash in over 11,500 branches across the UK. We’re now seeing credit union members have the same ease of access and accessibility that’s required in 2021 and beyond. It doesn’t stop there either - we have plenty of exciting new developments to announce this year.
What’s clear is that if you’re looking for a responsible place to borrow or save your money in 2021, a credit union should be your first thought.
If you’d like to find out more about credit unions and the fantastic things they do - catch up on our latest podcast here - and be sure to subscribe to stay in the loop with upcoming episodes!
Wishing you all health and happiness for the year ahead.
Andrew Rabbitt
CEO, incuto