Brighton and Hove’s leading credit union offers online accounts

The biggest credit union in Brighton and Hove is to offer online accounts thanks to the financial backing of the council.

And Jason Kitcat, the leader of Brighton and Hove City Council, promised to become the East Sussex Credit Union’s first online customer.

Councillor Kitcat is the latest member of the council to join the Brighton-based credit union.

He said that he was joining as the council’s Policy and Resources agreed to invest £100,000 in the credit union over the next two years.

The sum includes £10,000 to be spent on improving technology to raise the credit union’s profile and make it more accessible so that members can now join and manage their account online.

The money is being spent as part of the council’s financial inclusion strategy.

Councillor Jason Kitcat with Ann Hickey and Nikki Plummer from the East Sussex Credit Union

The council said: “Credit unions offer a chance to save and borrow ethically and a sensible option for those otherwise excluded from credit or bank accounts.

“In some cases a credit union can be a cheaper credit alternative to mainstream banks for everyone.

“Membership provides a fairer alternative to the exorbitant interest rates charged by the ‘instant cash’ payday loan companies.

“And members automatically become shareholders, ensuring ethical growth with benefits being fed back into the local community.”

Councillor Bill Randall, a member of the credit union for more than 14 years, and chairman of the council’s Housing Committee, said: “Vulnerable people in Brighton and Hove are the hardest hit by welfare reforms and the signs of poverty are all around us.

“More and more people turning to payday loan companies and loan sharks to survive and the queues are lengthening at food banks across the city.

“This substantial investment will enable our local credit union to make a real difference to those who have been reduced to appalling debt by these unscrupulous money lenders in the past.”

Councillor Kitcat said: “At a time when so many people are facing financial difficulties, our local credit union is a real lifeline.

“I’m really pleased that as part of our financial inclusion programme, we’ve helped them develop this online tool, making the East Sussex Credit Union as accessible as other lenders.

“Now more people will be able to save and borrow from them and, in turn, more support will be on offer to friends and neighbours in our communities.”

Credit union president Richard Priestman said: “These are exciting times for us.

“Thanks to this funding we can progress with our plans for growth and deliver our services to even more people within our local community.”

The council is undertaking other work too to tackle the problem of financial exclusion including the commissioning of a community banking partnership.

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