Credit unions and financial exclusion – the odd couple?

Credit unions have failed to develop in the United Kingdom in comparison with other jurisdictions. This is due, in part, to a restrictive legal framework and to policies adopted by local authorities and the UK government towards their development. However, it is their association with financial exclusion that has had the most detrimental impact upon the expansion of credit unions. The UK government perceives credit unions as filling the gap left by the banking industry in communities across the United Kingdom and has made recommendations to assist their development. The implementation of the recommendations is dependent upon the support of the banking industry. These developments and this context for implementation are considered in the light of the association of credit unions with issues of financial exclusion.