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Source: Jane Clayton/ONE News -
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Credit unions are coming out of the shadows and looking to take customers off mainstream banks.
In America, a Facebook initiated campaign culminated in thousands of people moving from banks to credit unions yesterday on what was coined Bank Transfer Day.
In New Zealand, the Association of Credit Unions (NZACU), which represents 21 of the 26 organisations throughout the country, is keen to let people know that it exists and that co-operative banking is an option.
"If you want to move from a major bank to a credit union we can handle that for you. We have a specific website for that and you can transfer across all of direct debits and APs etc," said Henry Lynch, the Chief Executive of the NZACU.
Credit unions describe themselves as "one of the financial world's best kept secrets" but already have more than 175,000 members in New Zealand using 100 branches throughout the country.
The various co-ops have branches and ATMs and offer loans and savings accounts but more importantly, a credit union customer is also a member-owner of the co-op.
"It's one member, one vote, regardless of your level of savings with that credit union," Lynch said.
With ANZ's $1 billion record-profit attracting negative attention last week , Lynch is predicting a swing towards the co-operative, member-owned financial model in this part of the world too.
"Being member-owned means that instead of going to mainly overseas shareholders, any 'profits' generated by credit unions are returned to members as a combination of improved customer service, fairer fees, better interest rates and local community sponsorship and support," Lynch said.
NZAVU says that collectively, credit unions rank amongst this country's largest financial service providers - by financial transactions.
In the last 12 months to 30 September 2011, the 21 NZACU member credit unions have grown their membership by 3.5%, their assets by 5.3% and deposits by 6.7%.
