Ethos Public Relations Manchester

Credit unions welcome Post Office link up proposals

by Ethos public relations

ABCUL – the Association of British Credit Unions – has welcomed today’s response to the consultation on the future of financial services in the Post Office  which sees the Post Office network as a natural distribution partner for credit union services.

Responding to the news on behalf of the credit union sector, Mark Lyonette, Chief Executive of ABCUL, said: “Credit unions are ideally placed to offer fair banking and affordable credit to people on low and modest incomes and a link up with the Post Office will bring these services within the grasp of many more people.”

The consultation response, published today by the Department for Business, Innovation and Skills proposes using a new community levy to be funded by retail banks to support a link between credit unions and Post Offices, allowing people to access credit union loans, current accounts and savings accounts throughout the Post Office’s 11,500 branches.

“Opening up the Post Office network to credit union services,” says Mark Lyonette, “will help to deliver a step change in the scale of credit unions in Britain, boosting access to their services for millions more people and raising awareness of credit unions as an ethical and sustainable banking alternative.”

In addition to savings accounts and affordable loans, credit unions offer a wide range of financial services including Child Trust Funds, Cash ISAs and Current Accounts which, thanks to today’s announcement, could soon be available through the Post Office network.

According to ABCUL, the Post Office link up would allow Post Office customers to join a credit union and existing credit union members to get easier access to their accounts, especially when away from home. Staff at a Post Office would be able to carry out transactions in real time, check account details and balances, pay out savings and give instant, pre-approved loans that are affordable and convenient.

Andy Burrows, postal expert at Consumer Focus said: “The emphasis on providing access to credit unions through the post office network, funded by levy on banks, would give people another trusted way to manage their money and get access to more affordable credit.”

Mark Lyonette of ABCUL concludes: “Credit unions across the country are keen to offer their services to many more people and the Post Office link up will help them achieve this.

“Today’s response is key to kick starting this exciting initiative which will contribute towards reducing financial exclusion and bringing fair and affordable banking services to many more communities – a real mutual and local alternative. We look forward to working with the next Government to bring these exciting plans to fruition.”

Posted at 29^th March 2010