LINK: Social Impact
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This study discusses the social impact of credit unions in Merseyside, highlighting their role in providing affordable credit, promoting financial stability, and improving the overall well-being of their members. It also explores the sustainability and growth potential of these credit unions.
Summary
Credit unions in Merseyside play a crucial role in improving the financial well-being of their members. They provide affordable credit, encourage savings habits, and reduce interest costs compared to higher-cost alternatives. This not only helps members manage their finances but also positively impacts their overall well-being. Credit unions are mission-driven and deeply connected to their communities, fostering strong relationships with members. They are adapting to digital services while maintaining personalized support for those in need. The research shows that credit unions have the potential to reach more people, extend geographically, and offer new products. While they face challenges, they are self-sustaining organizations that provide valuable services to their communities.
Key Points and Ideas
- Credit unions in Merseyside offer affordable credit and encourage savings, benefiting thousands of people.
- Members report improved financial stability and reduced financial stress.
- Credit unions save households significant sums in interest by offering lower-cost lending options.
- They provide support and assistance to members with dignity and respect, fostering loyalty and trust.
- Membership in a credit union has a positive impact on members’ physical and mental well-being.
- Credit unions demonstrate financial sustainability by consistently lending more capital and growing members’ savings.
- They have the potential to reach more people, expand geographically, and offer new products.
- Credit unions are adapting to digital services while maintaining personalized support.
- Succession planning and updating HR policies are recommended for credit unions.
- Marketing strategies should target new customer segments, including young people and lower-income households.
- Credit unions can play a role in helping members navigate the cost of living crisis.
- Supporters of credit unions should invest in reducing organizational risk and facilitating growth.
Key Statistics
- Credit unions in Merseyside made more than 35,000 loans valued at over £35 million in 2021/22.
- They estimate saving borrowers between £5.6 million to £23.5 million per year in interest payments on loans.
- Potential additional benefit for low to average income borrowers in Merseyside over the next five years is estimated at £28 million to £118 million.
Key Takeaways
- Credit unions in Merseyside provide a vital lifeline, offering affordable credit and promoting financial stability.
- They have a positive impact on members’ financial well-being, reducing stress and improving overall quality of life.
- Credit unions are mission-driven and deeply rooted in their communities, fostering strong relationships with members.
- Succession planning, HR policy updates, and online service enhancements are crucial for credit unions’ sustainability.
- Marketing efforts should target new customer segments and trusted partners to expand their reach.
- Credit unions can play a significant role in helping members navigate financial challenges, such as the cost of living crisis.
- Supporters should invest in reducing organizational risk and facilitating growth to ensure the continued success of credit unions.
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