This year’s theme for International Credit Union Day is Inspiring hope for a global community.
In a year where Covid-19 has wreaked havoc with our finances – credit unions are more important than ever.
Looking back over the last six months since Coronavirus hit the UK, Central Liverpool Credit Union (CLCU) has:
- Welcomed 100s of new members
- Supported members with £8 in every £10 lent between March and May, going towards the cost of Coronavirus
- Issued 86% of loans to people living in the 20% lowest income households in the UK
And in September 2020 we lent three times more than we did in September 2019.
Our educational work inspires hope too
We’re using International Credit Union Day to launch a new look and website, packed with money tips.
These are already having a positive impact.
65% of CLCU members are confident managing money compared to 58% across the UK. Additionally, 55% of members think it is important to save for a rainy day. Only 40% of people across the UK would agree.
With further extensions to lock downs, including Liverpool itself – we recognise that many of our members are facing financial hardship. Some of our members and potential members might have to claim benefits and tax credits for the first time. That can be a daunting task. That’s why our benefits calculator helps members find out what they are entitled to.
We want to continue to inspire hope. Covid-19 is harming people’s financial wellbeing. The Credit Union will be helping members improve their financial health and credit profiles.
CLCU is working with its technology partner, NestEgg, to build an app and email service to help members improve their credit profile, financial health and get back on track after Covid.
Users of the service should be more likely to be accepted for loans. The service is free. You can sign up on the NestEgg website.
A lasting legacy
Few people want to borrow. But everyone wants to save. That’s why a proportion of a loan repayment is always allocated to a savings account. Save As you Borrow means two thirds of borrowers now have more than £100 in their savings accounts. Borrowers with more than five years’ membership have 50% of their loan balance held as savings.
And compared to these pay day or doorstep loans, your Credit Union saves local residents £2.8m in excess interest payments every year.
Almost two thirds of members with more than £100 in their savings accounts live in the lowest income areas.