There are over two million credit union members in the UK. We don’t yet know what the long-term financial impact of COVID-19 will be, but we do know that credit unions and CDFIs are anchor institutions for communities across the country, and will continue to be for many years to come.
The current situation however, means that we’re all having to adapt accordingly. At incuto, we believe 2021 is going to be the year of the credit union, and we have lots of exciting plans ahead, to enable credit unions to thrive.
As the strain of the pandemic hits the most financially vulnerable, it’s important for credit unions and CDFI’s to reach and appeal to new members. The financial strain of the pandemic means plenty of people have a need for affordable, accessible credit, and we want those people to turn to an ethical lender, as opposed to high-cost, short-term solutions.
That’s why we’ve launched a new service with Experian, to offer affordable loans to people that would likely have turned to a payday lender, or worse, an illegal loan shark. Thanks to Experian’s loan comparison aggregator, customers searching on loan comparison sites will now be able to borrow from a credit union, at much more affordable rates. Customers will also be provided with advice on how to boost their credit profile, with ‘Boost’, a free-to-use service to help improve their credit profile.
This is the first time consumers have been able to access not-for-profit lenders from a major money comparison provider in this way. It’s another example of how we’re pushing the boundaries on behalf of our customers at incuto.
Crucially, people who would be unaware of the fantastic things credit unions and CDFIs offer, will now be able to enjoy the cultural, ethical and financial benefits of borrowing from them, compared to the less scrupulous lenders out there. It’s all part of our vision, to eradicate the poverty premium, and to bring the ethical finance message to more people across the UK & Ireland.
The importance of digital adaptation to suit the current climate is crucial too. As our CEO, Andrew Rabbitt put it: “Now more than ever, it’s vital that credit unions have the technology to provide a seamless, digital experience to their members, and connect multiple lenders to aggregation sites, in a quicker and more cost-effective way.”
For our partner organisations which integrate with Experian via incuto, they will have the ability to completely control how their loans appear, and who they appear to. On top of that, there are no setup or installation fees.
If you’re a credit union or CDFI and would like to find out more about being included on loan aggregation websites, and how it can work for you, get in touch with us today - hello@incuto.com
Steve Lockwood
Customer Engagement Director