Credit unions are becoming increasingly effective at targeting and reaching the financially excluded new research from Bristol University has revealed.
Credit unions target those most at risk of being preyed upon by loan sharks and overpriced doorstop lenders and provide services to those without bank accounts.
More than a fifth ñ 22 per cent – of the credit union members interviewed said that they had previously used home credit and of these 41 per cent had stopped since joining.
The study proved the value of the schemes and provided evidence they are reaching their target audience said Association of British Credit Unions boss Mark Lyonette.
“This report shows how credit unions are reaching a wide range of people in their communities and provides an invaluable baseline from which credit unions can measure their current and future work.†
“It will help inform strategies for bringing credit union membership, and the affordable credit and savings opportunities that come with it, to many more people in years to come.”
Credit unions provide the best rate of borrowing to those who cannot access other forms of credit and prevent them paying high rates of interest.
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