How to stop credit cards driving bad debt
One factor, above all else, drives credit union bad debt, and that is credit cards. NestEgg’s analysis of credit union defaults reveals a clear pattern: consistently high credit card balances and rapid balance growth (high velocity) result in a default rate that’s 50% higher than the average. Warning signs appear across all credit profiles. In…
Read MoreCredit union referrals are central to the Financial Inclusion Strategy
The UK Government’s recently published Financial Inclusion Strategy highlights a continuing challenge for the financial services sector: “The provision of affordable credit to financially excluded people is a challenge that the financial services sector as a whole must rise to meet.” The strategy makes clear that mainstream lenders, like banks, and community finance providers, like…
Read MoreOpen Data for Canadian credit unions: getting ready for Consumer-Driven Banking
Canada is moving from discussion to delivery. In Budget 2025, the federal government confirmed legislation to complete Consumer-Driven Banking (CDB) – often called Open Banking – signalling the start of an Open Data era for financial services. For credit unions, that means member-permissioned data becomes a standard input to faster, fairer lending. With rollout expected…
Read MoreA Blueprint to double credit union lending: from ambition to reality
The credit union sector stands at a pivotal moment. With growing recognition of the affordable credit gap, a government committed to the doubling of the mutual sector and a new financial inclusion strategy to be released, the opportunity to significantly expand credit union lending has never been clearer. But how do we move from aspiration…
Read MoreSupport tenants with affordable credit
Housing Associations are more than landlords. For a long time, Housing Associations have recognised the importance of financial inclusion. Most have introduced strategies or dedicated staff to help tenants access affordable credit, manage money, and reduce the risk of arrears. While the level of support varies across the sector, these initiatives can make a real…
Read MoreHow Northern Ireland Credit Unions could unlock £165m in additional lending
Northern Ireland faces significant financial inclusion. 350,000 people live in poverty. The lowest earners survive on just £51.45 each week after essentials. That’s a 20% decline since 2021. Meanwhile, one quarter of people seeking debt advice carry High-Cost Short-Term loan burdens averaging £1,700. The Consumer Council found 38% of people reported that their finances negatively…
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