A Caerphilly-based credit union is one of five across Wales to sign a multimillion pound UK Government contract.
Smart Money, based in the town’s Windsor Street, has joined Bridgend Lifesavers, Gateway Credit Union in Torfaen and Monmouthshire, LASA Credit Union in Swansea and North Wales Credit Union in the £35.6m Department for Work and Pensions contract.
It is hoped the deal will expand the five’s membership by a million people.
Known as the Credit Union Expansion Project, the new contract will see credit unions transform their offering by introducing such services as current accounts, budgeting accounts and Cash ISAs. It is hoped that the improvements will attract members from a wider range of backgrounds and income groups who will see credit unions as a suitable alternative to mainstream banking.
Bill Hudson, manager for the All Wales Credit Union Support Programme (AWCUSP), said: “The Credit Union Expansion Project has ambitious plans to transform the credit union sector in the UK and help credit unions to put in place the structures needed to give them a competitive edge in the marketplace. While five Welsh credit unions have signed up in the first phase of the contract, we anticipate that others will sign up in the future.”
Credit Union membership in Wales has been increasing steadily in the last three years and there are now over 68,400 members.
In the last 12 months the combined assets of Credit Unions in Wales have risen by 12.4% to £32m, with combined savings rising from £22.4m m to £25.6m. It is estimated that by 2020 there will be 140,000 Credit Union members in Wales.