LONDON—The U.K.’s credit unions have joined with a political party in a plan to triple membership to three-million people over the next 10 years.
The effort is being championed by the Co-operative Party, according to the Guardian. The goal is to make credit unions a more effective alternative to payday lenders.
In the U.K. there are currently one-million CU members (about 2% of the adult population), and politicians and church leaders have both been pushing for a greater presence by CUs. The Guardian reported that the government has already earmarked up to £38m for investment in credit unions, and quoted the archbishop of Canterbury, Justin Welby, as saying he wants credit unions to compete Wonga, the highest-profile payday lender, out of existence. “But Welby has also conceded he is concerned that credit unions cannot develop fast enough to fill the gap being left by payday lenders, which have been shrinking as a result of new regulations,” said Welby.