Ethos Public Relations Manchester

Credit union merger brings big benefits

by Ethos public relations

One of the biggest credit union mergers ever to take place in Britain sees the official launch of North Wales Credit Union today (11 July). Five successful credit unions have merged from a position of strength to offer more services to even more people.

Far from being forced into merger out of necessity, which is often the perception of mergers, these credit unions saw a huge opportunity to expand their services by working together.

“The formation of North Wales Credit Union is a landmark for the credit union sector in Britain,” said Mark Lyonette, Chief Executive of ABCUL – the Association of British Credit Unions. “The merger demonstrates the importance of credit unions working together to deliver a wider range of services and provide the consistently high quality of service necessary to attract a mix of members.”

Credit unions around the world have shown that, to be successful, they need to serve as broad a range of consumers as possible – not just those on the lowest incomes – and to achieve this they must collaborate.

The merger will enable the new credit union to deliver improved levels of service, with a wider network of offices and collection points, improved opening hours, higher savings limits and larger loans. In addition, it will be able to offer a broader range of services, such as insurance, budgeting and financial planning, as well as extending access to the Credit Union Current Account.

The new credit union has received the backing of the Welsh Government, as they believe it will enable many more people to access local financial services.

Speaking at the launch, Carl Sargeant AM, Minister for Local Government and Communities, said: “Tackling poverty and social exclusion where it persists in our communities is one of my key priorities over the next five years. Credit unions are ideally placed to help achieve this.

“To do so, credit unions need to be financially viable and sustainable in their own right. Greater collaboration between credit unions has clear advantages – to the credit unions themselves, their members and the wider communities. Where appropriate, merger between credit unions should be encouraged.

“The experience here in North Wales is a positive one and shows how a merger can work well.”

According to the Board of North Wales Credit Union (NWCU), the merger will create a strong, viable credit union which supports both existing and potential new members, providing them with a safe home for their savings.

Chair of NWCU John Killion said: “This exciting union not only builds on the strong foundations laid by all the merging credit unions, but heralds a new range of products and services for members.”

The Department for Work and Pensions at Westminster recently announced a £73 million fund to support suitable credit unions to expand and become financially sustainable – helping up to one million more people access clearer and fairer credit.

For more information about North Wales Credit Union visit www.northwalescu.co.uk. To find your local credit union visit www.findyourcreditunion.co.uk.

To read other news from ABCUL click here.

Posted at 11^th July 2011