A credit union which aims to save people from the high interest rates of payday loan companies has opened a new base in Caerphilly town centre.
Smart Money Cymru’s new office and shop front on Cardiff Road was opened this week by Communities Minister and Caerphilly AM Jeff Cuthbert.
Over the last three years the credit union has increased its members from 3,700 to 5,694 and has boosted its savings by 20% to £1.2 million. The new offices were opened with support from the Welsh Government, United Welsh Housing Association, Caerphilly County Borough Council and the Coalfields Regeneration Trust.
Mr Cuthbert said: “It is good to have the opportunity to celebrate the opening of this new Smart Money Credit Union head office and to meet those who help make a big difference to the community.
“This credit union is going from strength to strength, providing access to affordable financial services. This is more important than ever given the current economic climate.
“It is essential that communities are well-informed and aware of the facts to enable them to make informed decisions about their lives.
“Credit unions working together across Wales are central to this and are key to our efforts to tackle poverty.”
Credit unions are not-for-profit financial organisations set up for the purpose of ethical savings and borrowing and provide an alternative to traditional banks and high-rate loan providers.
Manager Andrina Davies explained how the work of credit unions was more important than ever.
She said: “We offer a safe and secure place to save and borrow. Payday loans companies are popping up everywhere but we put our members before profit.
“People who borrow from credit unions are more likely to spend the money locally while savers know it helps the local economy.”
Smart Money Cymru first opened its doors in 1989 and was established by Ty Isaf resident Ken Chamberlain following a trip to Ireland where he saw firsthand the impact credit unions could have.
The credit union has since grown to cover Caerphilly, Blaenau Gwent and Newport.
The Welsh Government has a target of getting 6% of the population being members of a credit union by 2020.
Last month ministers announced a £1.9 million in funding to encourage more people to use credit unions and help the institutions further develop the services and products they provide for customers.