Re-assessing the role of credit unions in community development: a case study of Derry Credit Union, Northern Ireland

Over the past twenty years there has been an upsurge of interest in the credit union movement. They claim to play a key role in community development and regeneration. Against a background of increasing financial exclusion and debt, its has been suggested that the community development focus of this movement is a key factor in its success. This paper based on a large community based organization suggests that there is a considerable discrepancy between what the organization claims its contribution to the community is and how the members view its role. It is suggested that their contribution to community development is limited to providing a savings and low cost loans service. Their claims to evoke a community spirit, sense of solidarity and empowerment are largely rhetoric. It is concluded that the credit union movement must re‐assess and re‐examine its aims as it is in danger of becoming seen simply as another financial institution.