News: Jason Kitcat on East Sussex Credit Union

Brighton & Hove City Council leader Jason Kitcat on East Sussex Credit Union

I was delighted to recently become East Sussex Credit Union’s first online customer, using a new online system that was developed with a £10,000 investment by the council. Together over 4,000 people in Brighton & Hove and East Sussex are saving over £1,500,000 with the credit union. This new online system for the credit union means these customers can now manage their savings or borrowing account online as well as through more traditional methods.

The credit union is a local, not for profit co-operative that has been running in the city since 2004. They provide secure savings accounts and affordable lending to local residents. Their ethical policies attempt to combat poverty and support economic resilience in our communities. It’s a fantastic alternative to traditional banks and loan providers.

One of the key differences is that anyone who is a member of the credit union also automatically becomes a shareholder. As the organisation is a co-operative, profits are given back to the membership in the form of a dividend – meaning the benefits of the credit union’s growth go straight back into the pockets of the local community.

The credit union often supports people who are sometimes not able to access credit or bank accounts with mainstream banks. So we are also involved in a wider programme that will see us investing £90,000 in the credit union over the next two years. This will crucially mean that the credit union are able to make smaller, faster loans to those in financial trouble, and that they are able to compete with payday lenders.

At a time when many residents are struggling to make ends meet, it’s important that we make sure affordable, ethical and local financial support is as accessible to residents as less scrupulous legal loan sharks and payday lenders are.
www.eastsussexcu.org.uk