Scottish credit union deposits hit half a billion pounds

Credit unions in Scotland now hold half a billion pounds of consumers’ savings.

The major landmark is revealed in the latest statistics released by the Bank of England, which show that members’ deposits in Scotland reached £500 million in the final quarter of 2016 – an increase of 7.3 per cent from the previous year.

The figures also show an annual increase of 2 per cent in Scotland’s total credit union membership to more than 396,000 people, including 59,000 junior savers.

At the end of 2016, the Scottish credit union movement’s assets had grown to £574 million, and £283 million was out on loan to members.

The latest figures highlight a decade of significant growth for Scotland’s credit union sector. Since 2007, membership of the nation’s credit unions has grown by 73 per cent, lending has expanded by 74 per cent, and the Scottish credit union sector’s assets have more than doubled by 149 per cent.

The half a billion pounds now saved in Scotland’s credit unions compares with the £192 million the sector held in deposits back in 2007 – a massive increase of 160 per cent.

ABCUL chief executive Mark Lyonette said: “Scotland has a proud history of strong credit unions, and with consumers trusting the sector with half a billion pounds of their savings, it’s clear that Scotland’s credit unions have a bright future ahead of them too.

“As more and more politicians and employers understand the massive contribution easy access to savings and loans through credit unions makes to building a financially healthy population, Scotland is well on its way to being a Credit Union Nation.”

Everyone in Scotland has a credit union they can join, and with 7.3 per cent of the population now using a credit union, Scotland has the fourth highest level of credit union membership in Europe (after only the Republic of Ireland, Northern Ireland and Poland).