The Scottish Government has provided small grants to help Credit Unions undertake a range of activities such as;
- increasing membership,
- raising the profile in communities, for example by securing High Street premises,
- expanding the service provided to include financial services such as money and budgeting advice or schemes targeted at young people to encourage healthy ways of spending and saving, and
- expanding their capacity - for example, by employing staff, carrying out marketing and increasing their common bond through the Capacity Fund (2003-2006) and the Assistance Fund (2006-2008).
The Scottish Government also developed the Service of General Economic Interest Approval Scheme for Credit Unions which enabled them to receive compensation for providing specific financial inclusion activities from a range of funders.
Up until March 2008 The Scottish Government funded 9 Credit Unions and a further 6 were funded by their local authority. In September 2008 the Scottish Government invested £30m in the Scottish Investment Fund to assist social enterprises in Scotland, and in January 2009 launched the Third Sector Enterprise fund of £12m - of which £250,000 was set aside to assist a Credit Union Fund. Credit Unions can apply to all 3 funds.
The Future of Credit Unions
Credit unions are not-for-profit financial cooperatives, organised to meet the needs of their members. The Scottish Government have commissioned this 'think piece' on credit unions in Scotland.
This Publication summaries what Credit Unions are, how they can be classified, how they have developed in different parts of U.K. and elsewhere, what factors account for successful development and speculates about their future.