Supporting Credit Unions
Tackling disadvantage and financial exclusion
As part of Lloyds Banking Group’s purpose of Helping Britain Prosper, the Group has supported the growth and profile of the Credit Unions sector in the UK.
Credit Unions provide a vital role in our society by providing responsible lending to consumers who may not be eligible for our products due to a low credit score. Without this alternative people face turning to payday lenders and high cost credit, which increases their risk of falling into financial difficulty.
Since 2014, we have awarded £6million to help Credit Unions, with strong, sustainable proposals for growth, improve their capital base. Delivered in partnership with the Credit Union Foundation and the Association of British Credit Unions (ABCUL) it has helped 120 credit unions, benefitting communities across the UK.
Improving the public’s understanding of Credit Union services is also vitally important to help communities thrive and having successfully piloted a customer signposting relationship between Lloyds Bank and Halifax branches in Leeds and the Leeds City Credit Union, we have rolled out this idea out to other parts of the UK.
Where we can strengthen local relationships even further, we want to do so by increasing the mentoring and volunteering support that many Lloyds Banking Group colleagues can offer Credit Unions. Our colleagues have expertise that could benefit the Credit Unions in terms of systems, processes, policies or working with their customers. We know from our existing colleague volunteering programme activity that access to these skills can often be even more helpful than direct financial support, and we continue to offer this support to the sector.
Helping Communities to tackle disadvantage and helping people change their lives for the better are key commitments in our Helping Britain Prosper Plan.
The Helping Britain Prosper Plan was launched in 2014 and unites our Group and our colleagues to meet targets to address core socio-economic issues facing the UK. We believe we can use our scale and reach to help people, businesses and communities to prosper, because we know that when Britain prospers, we can too.