As complaints against high street banks increase, is it any surprise that consumers, increasingly frustrated with poor service, are looking elsewhere for competitive savings, loans and mortgages?
With the Financial Ombudsman Service reporting almost 150,000 new complaints in the first half of the year against UK banks, many Brits are seeking out realistic alternatives for their money. And the answer for many comes in the surprising form of credit unions.
Previously thought of as the 'poor man's bank', credit unions will now be put on a level playing field with the traditional banking sector as new legislation shortly comes into force. Opening up membership out with their immediate geographical base, credit unions may now be able to fulfill their potential in filling the gap left by building societies, becoming a major competitor in the financial world. Over 870,000 Brits are currently members of credit unions.
As the largest in the UK, here at Glasgow Credit Union, we've already seen our membership increase by almost 50% since the start of the banking crisis in 2008 as consumers increasingly look for safer, more secure alternatives to the mainstream financial service providers. With over 27,000 members we fully expect this number to noticeably increase over the next couple of years.
In addition, the new rules will allow credit unions to pay interest on basic savings accounts for the first time, as opposed to dividends, delivering a further boost to consumers seeking highly competitive financial products.
And unlike banks, credit unions are directly responsible to our customers and not external shareholders. With no shareholders to satisfy, we can share their profits with our customers or reinvest to give them better service and returns.
Even the consumer guide Which? has cottoned on to the challenge credit unions are now mounting - they've recently launched a 60 second guide to credit unions, aimed at helping consumers make more informed financial decisions - click here to learn more http://bit.ly/m2LkW6
ENDS