Trade unions and credit unions share a long history as member-owned institutions that pool risk and resources for the benefit of all members. They utilise the strength in numbers of ordinary people to help each other through the shocks of life. Even the NHS itself was born out of mutual aid, modelled on the Tredegar Medical Aid Society, one of many mutual aid organisations that were a lifeline to the working class before the development of the modern welfare state after the Second World War. Many such institutions survive today, such as various co-operative societies, building societies and of course credit unions.

The RCN is a large member organisation, the establishment of a credit union could provide a meaningful mechanism for its members to access financial products and services, allowing them to invest in each other.  A credit union would reflect the RCN membership profile, including its members diverse ethnic and cultural backgrounds.

An RCN member credit union, could provide significant benefits to its members, however credit unions come with a considerable regulatory and administrative burden which must be fully explored and understood before a commitment is made to ensure it can be sustainable in the long-term.

References

Association of British Credit Unions Limited (2011) Setting up for Success. Available at: https://ldn.coop/wp-content/uploads/2015/03/Setting_up_for_Success_Your_guide_to_setting_up_a_credit_union-1.pdf?form=MG0AV3

Association of British Credit Unions (2015) How to create a sustainable credit union. Available at: https://ldn.coop/wp-content/uploads/2015/03/Setting_up_for_Success-How_To_Create_a_Sustainable_Credit_Union-1.pdf

Financial Conduct Authority (2024) Credit unions. Available at: https://www.fca.org.uk/firms/credit-unions