An ‘alternative mainstream’? The impact of financial inclusion policy on credit unions in Wales

Abstract

Not having access to mainstream financial services, such as a bank account or a credit card, can lead to a variety of social and economic exclusions. In a number of countries, particularly Ireland, Spain, Canada and the UK, credit unions— member-owned financial co-operatives—play a significant role in reaching under-served and excluded communities, as well as providing ‘safe’ avenues for savings and credit. Yet many credit unions are facing financial and operational problems. This article looks at the experience of Welsh credit unions. The research has implications for policy development and government–credit union relations in Wales and further research on credit unions and financial inclusion.

Keywords:

• Credit unions
• financial co-operatives
• financial inclusion
• public policy
• Welsh government

Notes

^* For a useful description of the characteristics of credit unions, see McKillop et al.'s (2011) article in Public Money & Management.

^* We distinguish between policy-makers who were directly or indirectly involved in the credit union support programme. All government officers were employed by, or on secondment to, the Wales Assembly Government unless otherwise indicated.

Additional information

Notes on contributors

Jan Myers

Jan Myers is a senior lecturer at the University of Gloucestershire, Cheltenham and associate researcher with the Cardiff Institute for Cooperative Studies (CICS), UK.

Molly Scott Cato

Molly Scott Cato is Professor of Strategy and Sustainability at Roehampton University, London and an associate researcher with CICS, Cardiff, UK.

Paul A. Jones

Paul A. Jones is a senior lecturer at Liverpool John Moores University and director of the Research Unit for Financial Inclusion.